Dubai – Mubasher: National Central Cooling Co. “Tabreed” on Wednesday announced plans to launch fixed-rate US dollar-denominated sukuk and begin a roadshow to market the sukuk.
The seven-year sukuk will be marketed through a series of fixed income investor meetings spanning the Middle East, Europe, and Asia, the first said in a bourse filing.
Tabreed plans to use the proceeds of the sukuk issue to refinance existing debt.
“The sukuk issuance will be underpinned by ratings issued by both Fitch and Moody’s who rated Tabreed at ‘BBB’ and ‘Baa3’, respectively,” Tabreed noted, noting that these ratings were the first by either ratings agency for the Dubai-listed company.
“Both ratings qualify Tabreed as “investment grade,” the cooling company added.
In late September, Tabreed’s shareholders approved the issuance of non-convertible bonds or sukuk worth up to $1 billion or their equivalent in local currency.
In August, Tabreed’s board proposed raising $1 billion (AED 3.67 billion) through an issue of bonds, sukuk, or other instruments.
Dubai-listed Tabreed previously posted AED 211.9 million in net profits for the first half of 2018, up 10% year-on-year from AED 192.7 million. Revenues grew 2% to AED 650.7 million in the six months to June versus AED 639.2 million in H1-17.
Tabreed’s stock closed Wednesday higher by 2.5% to AED 1.64.