Empower settles $728m loan ahead of schedule
The Emirates Central Cooling Systems Corporation, Empower, announced that it has prepaid three loan instalments of US$157.5 million (AED580 million) prior to their maturity.
With these prepayments and payment of DIB facility of $128 million, Empower has fully settled its term loan facilities for a total amount of $728 million (AED2.67 billion) and the company will have zero debt on its books at the end of the year.
Ahmad bin Shafar, Chief Executive Officer of Empower, said, "We have pre-paid the loan facility instalments two years prior to its final maturity. This reflects the robustness and sustainability of our business model and our prudent financial strategy that is paying off significantly."
"Empower has prepaid its loan instalments in the past as well under bilateral and syndicated loan facilities. However, this prepayment has a specific significance as Empower has fully settled all its financial indebtedness and will not have any debt balance in its books as of 31st December 2018," he added.
Empower has adopted the business model of investing in plants and network infrastructure based upon actual demand in a particular project which has ensured sustainable growth and consistent financial performance of the company. As a result, Empower has always settled its obligations as per the timelines or ahead of scheduled timelines which have been acknowledged by banks who in turn value their investments in our business.
"Being a utility business with long-term and stable cash flows, district cooling significantly reduces financing risks for banks and financial institutions and we have witnessed increased confidence of banks and financial institutions in financing UAE’s district cooling industry, notably Empower," Bin Shafar stated.
"We will continue to invest in the further development of our infrastructure and network to cater to the rapidly increasing demand for district cooling in Dubai. We are delighted to settle these loan instalments ahead of the agreed timelines" he said in conclusion.
Currently, Empower has more than 1,090 buildings that are using district cooling services, catering to around 100,000 customers. The company operates more than 1.4 Million Refrigeration Tons (RT), providing environmentally-friendly district cooling services to large-scale real estate developments, such as Bluewaters, Jumeirah Group, Business Bay, Jumeirah Beach Residence, Dubai International Financial Centre, Palm Jumeirah, Jumeirah Lake Towers, Ibn Battuta Mall, Discovery Gardens, Dubai Healthcare City, Dubai World Trade Centre Residences and Dubai Design District, amongst others.
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