Empower pays back, refinances

Dubai-based Emirates Central Cooling Systems Corporation (Empower) said on Tuesday that it had signed an agreement with a consortium of local and international bank under which it refinanced $175 million (Dh642.25 million) loan and paid back $50 million as part of its $225m facility it obtained earlier.

The consortium consisted of Royal Bank of Scotland, Standard Chartered, Citibank, Emirates NBD and Mashreq.
The new facility agreement was signed by Ahmad Bin Shafar, CEO of Empower and the various lenders in Dubai.

Bin Shafar said: “Empower has been growing steadily as part of its plans to position itself as a major player in the global front. We pursue an ambitious strategy to finance our projects through an optimal mix of debt and equity to maximize shareholder returns.”

Empower has reached a remarkable increase in its operations with over 300,000 Refrigeration Tons (RT) capacity generating stable stream of revenues and cash flows that will enable the company to meet all its debt obligations on schedule. 

Refinancing of a facility of this magnitude clearly demonstrates the robustness and sustainability of Empower’s business model and the confidence of the international and local banks and financial institutions in the company’s leading position in the Middle East. The deal is appropriately priced considering the current market conditions, and will significantly support Empower’s long term business plans.

Empower has revealed recently that the number of its cooling plants has registered an increase of 37 per cent. This comes at a time when Empower is witnessing a tremendous raise in the number of plants and is expanding its operations to respond to the huge demand for district cooling as an alternative solution to the conventional air conditioning systems in the UAE.

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