Dubai – Mubasher: National Central Cooling Company (Tabreed) has raised $500 million from seven-year and 2.5% coupon bond issuance, according to a press release on Wednesday.

The issuance has attracted 140 local and international investors, allowing the company to tighten pricing to achieve a final coupon of 2.5% and to raise the size of the final bond to $500 million.

Hence, the bond issuance was oversubscribed five times at its initial size of $400 million.

The bond, which will be listed on the London Stock Exchange, is rated Baa3 by Moody’s and BBB by Fitch, in line with Tabreed’s corporate ratings.

Tabreed Chairman, Khaled Abdulla Al Qubaisi, said: "The success of the issuance is proof of the continued confidence in Tabreed and its ability to generate sustainable cash flows and returns. Our solid fundamentals and strong credit ratings have translated into unprecedented market appetite."

Tabreed CEO, Bader Saeed Al Lamki, commented: "The bond issuance, which was extremely well received by the market, is part of a long-term strategy and it enables us to further expand our operations with a focus on scalable growth."