Emicool signs $216m Islamic loan
Dubai, October 21, 2012
Dubai-based Emirates District Cooling (Emicool), a joint venture between Dubai Investments and Union Properties, signed a Dh793 million ($216 million) Islamic loan guaranteed by both parents, a statement said on Sunday.
Structured in a sharia-compliant manner, the facility runs for ten years, according to the statement from Mashreq, one of the banks providing finance.
The cash will be used to refinance a Dh668 million bridge loan and other facilities raised with banks on an individual basis, which funded construction of cooling plants in the Motor City and Dubai Investment Park areas of the emirate.
The facility will "help realise our long-term expansion goals such as investing in infrastructure", Abdul Aziz Bin Yagub Alserkal, chairman of Emicool, said in the statement.
The seven banks which participated in the original bridge loan signed up to the new transaction, the Mashreq statement said, although it didn't name the other banks.
Abdul Aziz Bin Yagub Alserkal, chairman, Emicool, said: “Securing the 10-year refinancing plan has put Emicool on a firm growth path. This milestone reaffirms the success of our business model, which has also been validated earlier when we won the competitive syndication agreement in 2008.”
“Emicool has raced ahead to become the market leader in the UAE within nine years of its inception. The financial boost will help realise our long-term expansion goals such as investing in infrastructure, which will assist to offer quality products at competitive prices to capture a significant share of the market.”
Adib Moubadder, managing director, Emicool, said: “The maximum capacity of the plants serving the developments in Dubai is 300,300TR of which the installed capacity is 213,300TR. We provide continuous chilled water cooling services to over 10,000 customers, with the most efficient and highest quality service to support the growth of Dubai’s infrastructure with sustainable development and innovative technologies.”
“For the past two years Emicool has won the gold award conferred by the International District Energy Association (Idea) for the most buildings connected or committed to service beyond North America. The company is currently working on its plan to expand operations to Saudi Arabia and Qatar.”
Amr El Nokaly, head of commercial banking at Mashreq, said: “We are very pleased to play a major role in this deal as the MLA and contribute to its closure. Our constant objective is to assist clients with the necessary facilities and this is demonstrated by our extensive expertise in similar deals. The loan structure and tenure demonstrate our strong commitment and support to projects that are important to the development of the UAE.”
Dubai's district cooling companies provide air conditioning using a central production point to feed chilled air into areas and buildings, as opposed to using separate conditioning units in individual rooms, which would be much more expensive. – Reuters & TradeArabia News Service