Published On: Tue, Jan 6th, 2015

Tabreed completes AED 2.6 billion refinancing of existing debt facilities

Tabreed completes AED 2.6 billion refinancing of existing debt facilities

Tabreed completes AED 2.6 billion refinancing of existing debt facilities

The National Central Cooling Company PJSC, Tabreed, the UAE-based regional district cooling company, today announced the completion of the refinancing of its current AED2.6 billion debt facilities.

The refinancing is comprised of an AED692 million senior term loan facility (Facility A), which matures on 31st December 2018, and an AED1,450 million senior term loan facility (Facility B), maturing on 31st March 2021, as well as an AED450 million revolving credit facility (RCF) with a maturity date of 31st March 2021.

The refinancing has been consolidated into a smaller subset from Tabreed’s existing syndicate of banks, with ADCB, FGB and Mashreq Bank acting as Mandated Lead Arrangers.

Jasim Husain Thabet, Tabreed’s Chief Executive Officer, said, “As a result of Tabreed’s robust utility business model, which is anchored in long-term, stable and recurring revenue streams, we have taken the opportunity to refinance our existing debt and strengthen our balance sheet. The new terms in the agreement are yet another endorsement of our company’s financial strength and positive future outlook.” Thabet added, “2014 has been an excellent year for Tabreed and we have recently signed a number of exciting deals which underline Tabreed’s position as the market leader in the GCC and one of the district cooling industry’s leading companies.” Driven by robust economic growth and increasing demand for district cooling across the region, Tabreed reached several critical milestones in 2014, including an AED1.05 billion acquisition in a consortium with Mubadala Infrastructure Partners of the existing district cooling plant on Al Maryah Island in Abu Dhabi.

The company also signed a long term concession agreement with Meraas Leisure and Entertainment to provide 45,600 tons of cooling to the new Dubai Parks and Resorts development in Jebel Ali, and has renewed its master services agreement with the UAE Armed Forces in a contract valued at AED6 billion.

At present, Tabreed owns and operates 67 district cooling plants delivering over 938,800 tons of cooling to critical projects across the region ranging from Abu Dhabi’s Yas Island and Al Maryah Island to the Dubai Metro, the Pearl – Qatar, and the Jabal Omar Development Project in the Holy City of Mecca.

Tabreed, established in 1998, is an Abu Dhabi-based utility company that provides energy-efficient, cost-effective and environmentally-friendlier year-round district cooling solutions in the GCC.

Source : WAM News Agency for United Arab Emirates

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