UAE’s Tabreed to issue $1bn bonds

  • Date: 08-Oct-2020
  • Source: Gulf Business
  • Sector:Financial Markets
  • Country:UAE
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UAE’s Tabreed to issue $1bn bonds

The National Central Cooling Company (Tabreed) has received approval from shareholders to raise $1bn through the issuance of bonds or sukuk.

In a statement issued to the Dubai Financial Market earlier this week, it said that the bonds or sukuk will be issued in one or more tranches over the next 12 months.

It will be valued with a tenor of up to 30 years at a profit rate not exceeding the prevailing market rate available to the companies with the same credit rating.

It said that amount raised will used to fund acquisitions or for general corporate purposes.

In April, Tabreed acquired a 80 per cent stake in property developer Emaar's Downtown Dubai district cooling business for Dhs2.48bn ($675m).

Read: UAE's Tabreed acquires 80% stake in Emaar's district cooling business

Following that transaction, Tabreed's