Tabreed raises $500m through sukuk is­sue

The National - News - - BUSINESS -

Na­tional Cen­tral Cool­ing Com­pany (Tabreed), listed in Dubai, raised $500 mil­lion (Dh1.8 bil­lion) with a fixed rate se­nior un­se­cured US dol­lar de­nom­i­nated sukuk with a seven-year tenor. The is­sue fol­lows a se­ries of fixed in­come in­vestor meet­ings which took place in Europe and Asia, as well as in the UAE. The new sukuk, which will be listed on the Lon­don Stock Ex­change, was over­sub­scribed by 50 per cent. The sukuk was com­pet­i­tively priced, with a profit rate of 5.5 per cent, un­der­pinned by Moody’s Baa3 and Fitch’s BBB credit rat­ings. These rat­ings are the first to be as­signed to Tabreed by Moody’s and Fitch, and have also been as­signed to the sukuk it­self. Tabreed has also ar­ranged new bank fa­cil­i­ties up to Dh1.5bn. To­gether with the pro­ceeds from the new sukuk is­sue, these will be used to re­fi­nance Dh2.8 bil­lion of cor­po­rate debt to im­prove Tabreed’s cash flow and al­low for the com­pany’s ex­pan­sion into new and ex­ist­ing mar­kets.

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