Tabreed signs Islamic loan deal with HSBC

Dubai's National Central Cooling Company (Tabreed) has signed a Dh1 billion Islamic loan deal with HSBC Middle East to fund expansions, official news agency Wam reported on Thursday.

HSBC, National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Standard Chartered and Dubai Islamic Bank – among others – will be the lead managers of the 12-year ijara, or Islamic lease agreement.

Tabreed, which builds cooling and air conditioning systems, said in February it planned to raise at least $570 million this year in Islamic loans and convertible bonds to finance expansions.

Islamic finance complies with the religion's ban on the receipt of interest, and returns on Islamic bonds, or sukuk, are derived from underlying physical assets, which pay a dividend or rent to bondholders.

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