Tabreed raises $500m sukuk

Tabreed raises $500m sukuk
The new sukuk will be listed on the London Stock Exchange (LSE)
Tabreed
TABREED
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Dubai – Mubasher: National Central Cooling Company (Tabreed) on Tuesday announced it has successfully raised seven-year term fixed rate senior unsecured US dollar-denominated RegS sukuk worth $500 million (AED 1.8 billion).

The new sukuk will be listed on the London Stock Exchange (LSE) as it had a solid institutional demand in Asia and Europe, as well as in the UAE, enabling the issue to be oversubscribed by 50%, Tabreed said in a filing to the Dubai Financial Market (DFM).

“The sukuk was competitively priced, with a profit rate of 5.5%, underpinned by Moody’s Baa3 and Fitch’s BBB credit ratings, which were announced last week,” the leading UAE-based regional district cooling utility added.

The company has also arranged new bank facilities of up to AED 1.5 billion, which will be used, along with the proceeds from the new sukuk, to refinance AED 2.8 billion of current corporate debt, according to the filing.

In September, Tabreed said its shareholders approved the issuance of $1 billion non-convertible bonds or sukuk.

Tabreed previously posted a 10% year-on-year increase in net profit for the first half of 2018, recording AED 211.9 million, versus AED 192.7 million.

The company’s revenue went up by 2% to reach AED 650.7 million at the end of June, compared to AED 639.2 million in H1-17.