Tabreed, the region’s award-winning district cooling pioneer, has formally sealed a landmark deal with HSBC Amanah, which lead managed and arranged a 12 year Ijara (Islamic lease) facility for Dh1 billion ($272.3 million)

The financing will be used to refinance existing facilities as well as support the on-going expansion of cooling projects, said a top Tabreed official.

HSBC Amanah, acted as the initial mandated lead arranger and following general syndication was joined at the mandated lead arranger level by Abu Dhabi Commercial Bank, Dubai Islamic Bank, National Bank of Abu Dhabi and Standard Chartered Bank.

First Gulf Bank participated at the lead arranger level, while Abu Dhabi Investment Company, Badr Al-Islami (the Islamic banking division of Mashreqbank) and BBK all acted as arrangers, with United Arab Bank as a participant, said Abdulla Matar Al Muhairi, chief financial officer, Tabreed.

“District cooling is a capital intensive business and requires huge fund inflows. As one of the leading financial institutions with a global footing and a strong Islamic finance base. HSBC along with other esteemed patrtners on this Ijara syndication are the top international financial groups in the world with a proven track record," Al Muhairi noted.

"We believe our dedicated efforts combined with undeterred support from our key financers shall further facilitate our expansion plans,” he added. “This mammoth Ijara syndication is significant as it also reflects the enormous confidence of the banks on us.”

Established in 1998, HSBC Amanah, the global Islamic banking division of the HSBC Group, has become one of the leading providers of Islamic financial services worldwide.

With more than 150 professionals serving the Middle East, Asia Pacific, Europe and the Americas, HSBC Amanah represents the largest Islamic banking team of any international bank.

"This Ijara syndication represents a significant accomplishment as it was arranged in a challenging and increasingly volatile market environment. It confirms the confidence that financial institutions have in the Tabreed credit story and its management team.  We are privileged to have lead arranged this Islamic syndication for Tabreed," commented Mohammed Dawood, director, global capital markets, HSBC Amanah..

"This confirms our status as a leading provider of Islamic financial solutions to the company, following on from Tabreed debut rated $200 million Sukuk issue in 2006 which HSBC Amanah joint lead arranged and book ran”, he commented.

Tabreed pioneered the use of district cooling in the Middle East in 1998 and since then the company has undertaken projects in various other countries in the Middle East including all GCC nations as well as Jordan in the Levant.-TradeArabia News Service