Abu Dhabi-based district cooling provider National Central Cooling Company (Tabreed) has raised $500m with a seven-year sukuk.

The fixed-rate senior unsecured US dollar-denominated RegS sukuk will be listed on the London Stock Exchange.

Tabreed says the Islamic bond issue was oversubscribed by 50 per cent, with strong institutional demand both locally and in Asia and Europe. It was priced with a profit rate of 5.5 per cent, with credit ratings of Baa3 from Moody’s Investor Services and BBB from Fitch.

Tabreed has also arranged new bank facilities worth up to AED1.5bn ($409m). This, together with the proceeds from the new sukuk, will be used to refinance AED2.8bn of current corporate debt.

Tabreed says the refinancing of this debt will deliver a number of benefits, including improved balance sheet efficiency and a longer debt maturity. These in turn will further improve Tabreed’s cashflow, providing fresh impetus for the company’s expansion into both existing and new markets.

Tabreed has 72 district cooling plants in the region, and delivers more than 1 million refrigeration tonnes.

In 2017, French energy firm Engie completed the acquisition of 40 per cent shares in Tabreed.