Tabreed refinances 2011 debt

05 January 2015

New debt facilities feature three tranches

UAE-based district cooling company Tabreed has completed the financing of AED2.6bn ($708m) of debt facilities originally extended to the company in 2011.

Tabreed had to restructure its existing debt in 2011, after running into difficulties due to the global financial crisis and the property crash in the UAE.

The new debt facilities feature three tranches: a AED692m senior term loan (Facility A); a AED1.5bn senior loan (Facility B); and a AED450m revolving credit facility.

The arranging lenders are Abu Dhabi Commercial Bank, First Gulf Bank, and Mashreq bank. Facility A will mature at the end of 2018, while the other two tranches mature at the end of March 2021.

Tabreed has been capitalising on the recent economic growth in the UAE and increased investment in infrastructure.

During 2014, the firm was part of a consortium with the local Mubadala Infrastructure Partners to acquire an existing district cooling plant on Al-Maryah Island in Abu Dhabi.

The company also signed a concession agreement with the local Meraas Leisure and Entertainment to provide cooling to a new development being built at Jebel Ali by Dubai Parks & Resorts. Dubai Parks & Resorts is developing three theme parks in the emirate, based on different concepts. One will be called Motiongate and will be themed around Hollywood films. The second park will be the Middle East’s first Legoland. The final park will have a Bollywood theme.

Following the refinancing agreement, Tabreed released its third-quarter results for 2014, announcing a net profit increase of 21 per cent to AED244.5m, compared with AED202.3m in the same quarter last year.

Group revenue also increased 5 per cent to AED870.7m from AED826.5m in the same period last year.

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