National Central Cooling Company (Tabreed) is set to convert a AED1.1bn ($308m) loan from Abu Dhabi’s Mubadala Development Company into bonds.

The loan was given to Tabreed as part of a debt restructuring agreed last year, along with a further AED1.7bn of convertible bonds due in 2019. Mubadala owns 15 per cent of the company, which provides centralised air conditioning to residential and commercial properties.

Tabreed has drawn AED1.13bn of a potential AED1.4bn that was offered as a loan by Mubadala and is due to mature at the end of 2012. The existing convertible bonds mature in 2019.