Abu Dhabi-based district cooling company Tabreed has secured a refinancing package through an estimated AED1.5bn ($408m) Islamic finance facilities agreement.

The Islamic facility will refinance part of the company’s existing senior bank debt, and will also provide additional funds for capital expenditure and investment. The refinancing was arranged by Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Mashreq al-Islami, Mashreq Bank’s Islamic banking entity.

The local office of India’s Synergy was financial advisor for the refinancing deal.

Tabreed’s bank debt was provided in December 2014, and was amended and restated in May 2015.

In June, France’s Engie signed an agreement with Abu Dhabi’s Mubadala Development Company to buy a 40 per cent stake in Tabreed.

The deal will involve converting all of Mubadala’s mandatory convertible bonds into shares. The investment firm will transfer stocks equivalent to a 40 per cent shareholding in Tabreed to Engie at a price of approximately AED2.62 a per share, which values the deal at AED2.8bn ($762m), Tabreed said in a statement to Dubai Financial Market (DFM).

Mubadala will retain the remaining shares and will remain the biggest shareholder in Tabreed ahead of Engie with an approximately 42 per cent stake. The transaction is expected to be completed in the third quarter of this year, the statement added.