Tabreed repays Dh735m sukuk

National Central Cooling Co. (Tabreed) said today in a statement on the Dubai Financial Market (DFM) that it has repaid in full a Dh735m Sukuk, or Islamic bond, which was due to mature today.

“The repayment follows the completion of the company’s recapitalisation program on April 1, 2011,” Tabreed said in the statement. The five-year Sukuk was launched by Tabreed in July 2006.

The repayment “improves the company’s overall financial position,” said Tabreed’s chairman Waleed Al Mokarrab Al Muhairi in the statement, while maintaining that the Abu Dhabi-based district cooling firm’s long-term growth potential remains strong following the strong capital structure put in place with the recapitalisation program.

Earlier this year, Abu Dhabi government-owned Mubadala Development Co. injected fresh funds into the company to help it meet its financing needs as part of company-wide financial revamp. “The repayment of the 06 Sukuk today was contemplated in our structuring of the recapitalisation program and improves the company’s overall financial position,” Al Muhairi added.

Tabreed has earlier announced a 21 per cent y-o-y decline in its Q1 profits for 2011, from Dh40.4m in Q1 2010 to Dh31.9m in Q1 2011.

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