Empower, one of the leading district cooling service providers in the Middle East, has announced details of the $600 million loan recently secured by the company.
The syndicated term loan facility has been underwritten through four mandated lead arrangers, including Citibank, Standard Chartered, Emirate NBD and Mashreq with a 6- year term.
Repayments are scheduled to be made in half-yearly instalments with the final instalment due in December 2019.
"Empower continues to pursue a strategy of financing its projects through an optimal mix of debt and equity in order to better maximise shareholder returns.
“This loan in particular will ensure that adequate and cost-effective funding is readily available to sustain our future growth and while also driving the implementation of our landmark projects," said Ahmad Bin Shafar, CEO, Empower.
He added, "This funding reflects the confidence of banks and financial institutions in our prudent and cautious strategy and sustainable business model."
Empower had previously secured syndicated as well as bilateral loan facilities and has always met its commitments and repayment obligations as per agreed terms.
Bin Shafar went on to say, "Empower has adopted a business model that works on the strategy of investing in plants and network infrastructure driven by actual demand in a particular project.
“This has resulted in sustainable growth of the company and avoided financial losses witnessed in other district cooling companies in the region."
The deal means Empower now has a 70 per cent market share in the UAE with a capacity of about one million Refrigeration Tonnes (RT), making it the largest district cooling provider in the world in terms of capacity.