Tabreed signs financing deal with HSBC

02 August 2002

The local National Central Cooling Company (Tabreed) signed on 30 July a AED 91 million ($25 million) Islamic financing agreement with HSBCto finance the construction of two district-cooling plants at Muroor street and Zayed Sports City in Abu Dhabi emirate.

The eight-year door-to-door transaction was structured by Amanah Finance, part of theHSBCgroup , as an ijara contract and was arranged and underwritten by HSBC Bank Middle East. A team of three banks - Mashreqbank, United Arab Bank and The Saudi British Bank - is supporting the deal.

In December, Tabreed awarded two engineering, procurement and construction (EPC) contracts to the local Dhafir Development & Contracting to install the water-cooling facilities. The nine-month contracts, worth a total of about AED 70 million ($19 million), call for the construction of: a plant room; four chiller units, each with a capacity of 1,850 tonnes; four chilled water pumps; twin-cell cooling towers, each with a capacity of 11,000 gallons a minute; and related pipeline works. The consultant is Tebodin Middle East, part of Tebodin of the Netherlands (MEED 7:12:01; 24:8:01).

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