Tabreed raises Dh2.6 billlion loan

UAE utility Tabreed has raised a Dh2.6 billion ($707.9 million) seven-year loan facility from three banks. (Supplied)

UAE utility Tabreed has raised a Dh2.6 billion ($707.9 million) seven-year loan facility from three banks, two banking sources familiar with the matter said on Sunday.

National Central Cooling Co., Tabreed's formal name, has split the loan into two parts: Dh1.6 billion is a term loan which will be repaid at the end of the loan's life, with the rest structured as an amortising facility, which means repayments will be made during the seven years.

The Dubai-listed firm will pay a margin of 1.4 per cent on the amortising part of the loan and 1.9 per cent on the remaining chunk, one of the sources said.
Tabreed, which has 67 district cooling plants across the Gulf, did not respond to Reuters requests for comment. The sources spoke on condition of anonymity as they are not authorised to speak to the media.

The loan was arranged by Abu Dhabi Commercial Bank , First Gulf Bank and Mashreq, the sources said, adding the funding was completed at the very end of 2014.

Abu Dhabi fund Mubadala holds a 13.4 per cent stake in Tabreed, with a further 19.9 per cent owned by its subsidiary General Investments FZE, according to bourse data.

Tabreed's share price fell 1.8 per cent on its first day of trading in 2015. It slumped by around 55 per cent last year.

 

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