Tabreed, the national central cooling company, announced today the successful acquisition of new financing facilities amounting to 1.8 billion dirhams to support its strategic growth initiatives and enhance its capital structure.
This move aligns with Tabreed’s plans to fund its capital requirements and diversify its funding sources, which include investment needs and future expansion.
The new financing, referred to as “the financing,” has a term of six years and was completed in partnership with Emirates NBD and Mashreq Bank.
Fully compliant with Islamic law, the financing consists of two tranches in dirhams and US dollars, reflecting Tabreed’s commitment to providing comprehensive financing solutions that cater to the preferences of investors in the region.
In a demonstration of its strong commitment to sustainability and environmental preservation, one billion dirhams of the total financing has been allocated under a green financing framework.
Khaled Al Mazrouei, CEO of Tabreed, stated that the successful financing reflects the robustness of the company’s business model and the high level of trust it enjoys from its banking partners. He noted that the financing facilities will enable the company to advance its strategic investments, accelerate its expansion, and enhance long-term value while maintaining a steadfast commitment to responsible and sustainable financial practices.
Additionally, Adil Al Wahidy, Tabreed’s CFO, mentioned that the Sharia-compliant financing forms a fundamental component of the company’s capital strategy, embodying its commitment to financial inclusion and alignment with the values of its partners and stakeholders. He highlighted that by integrating Islamic financing principles into the company’s funding mix, the available liquidity is expanded while maintaining a strong investment-grade credit rating.
He also added that this financing supports not only Tabreed’s acquisition strategy but also strengthens its balance sheet by improving debt maturity profiles and maintaining a solid financial base.
Ahmad Al Qasim, Head of Business Banking at Emirates NBD, stated that this transaction marks a pivotal moment in Tabreed’s financing strategy, supporting the development and maintenance of critical infrastructure assets across the country. He noted that the innovative financing package is characterized by its multi-currency structure, seamlessly integrating Islamic financing principles with green finance standards in the approved documentation.
He expressed pride in Emirates NBD’s role in structuring this leading deal, which reflects the ongoing confidence Tabreed has in the bank and reinforces the strong strategic partnership between the two institutions.
Jouel Van Dosen, Head of Corporate and Investment Banking at Mashreq, welcomed the collaboration with Tabreed on this strategic deal, which reflects the solid foundations of the company and its ambitious future strategy. The sustainable and Sharia-compliant financing structure embodies the shared commitment to responsible innovation and inclusive financing solutions.
He expressed Mashreq’s pride in continuously supporting the growth of Tabreed and its role in building a more sustainable and environmentally responsible future in the region.
This strong interest from participating banks underscores Tabreed’s position as a highly creditworthy company and its ability to access competitive funding sources in various markets.
Tabreed remains focused on maintaining strong liquidity levels and efficiently managing debt to ensure a balanced capital structure that supports the implementation of its short-term plans while achieving sustainable long-term value.
This financing represents a significant step in Tabreed’s journey towards sustainable growth, driven by disciplined financial management and a clear strategic vision to reinforce its leadership position globally in the district cooling sector.