Empower repays loan to HSBC

Emirates Central Cooling Systems Corporation (Empower), a district cooling company, said it would make final payment of Dh40 million to HSBC Bank on July 1 as part of Dh200 million loan it had obtained.

Ahmad Bin Shafar, CEO of Empower, said that the company used the loan to expand its operations in the UAE and build its infrastructure and network, to cater to the rapidly increasing demand for district cooling, especially in Dubai.

This loan from HSBC Bank was used to build Empower’s plant and network in Jumeirah Beach Residence project which is regarded as one of the prestigious projects in Dubai.

The loan tenor was for 7 years commencing from the year 2004 with repayments in five annual installments commencing from the year 2007 onwards.  The company has settled all previous installments in accordance with the terms and conditions of the loan agreement and will settle the fifth and final installment on July 1.

Bin Shafar added: “We pursue a prudent strategy to finance our projects through an optimal mix of debt and equity to maximise our shareholder returns. We have settled all our loans as per the agreed timelines which demonstrates the robustness and sustainability of Empower’s business model and effectiveness of its financial strategy.”

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