ABU DHABI, (UrduPoint / Pakistan Point News / WAM – 21st Oct, 2020) National Central Cooling Company, Tabreed, today announced that it has successfully raised US$500 million (AED1.8 billion) with a 7-year, 2.5 percent coupon bond issuance.
With orders coming from around 140 high quality local and international investors, the issuance was oversubscribed almost 5 times at its initial size of US$400 million, demonstrating strong investor confidence in Tabreed’s solid credit fundamentals, despite current global economic uncertainty.
This significant demand allowed Tabreed to tighten pricing significantly to achieve a final coupon of 2.5% and to increase the size of the final bond to US$500 million. The bond is rated Baa3 by Moody’s and BBB by Fitch, in line with Tabreed’s corporate ratings.
The 7-year bond was particularly well received by international investors, who accounted for 90% of the final geographical allocation, with 49% from Europe, 21% from Asia and 20% from offshore US funds. The bond will be listed on the London Stock Exchange, alongside Tabreed’s existing 2025 Sukuk.
Commenting on the issuance, Khaled Abdulla Al Qubaisi, Tabreed Chairman, said, “The success of the issuance is proof of the continued confidence in Tabreed and its ability to generate sustainable cash flows and returns. Our solid fundamentals and strong credit ratings have translated into unprecedented market appetite, and I am proud to say that this has enabled us to attract significantly oversubscribed demand from a diverse pool of investors.
Bader Saeed Al Lamki, Tabreed Chief Executive Officer, said, “The bond issuance, which was extremely well received by the market, is part of a long-term strategy and it enables us to further expand our operations with a focus on scalable growth. The global interest in Tabreed is a testament of its strong financial position, sound business model and leading position in the District Cooling industry.
For over 22 years, Tabreed has been the partner of choice for organisations seeking environmentally friendly cooling solutions to support their sustainability goals and to reduce their overall energy consumption and carbon footprint. With 83 District Cooling plants, Tabreed currently delivers over 1.342 million refrigeration tons to key projects, including iconic developments such as the Burj Khalifa, Dubai Opera, The Dubai Mall, Sheikh Zayed Grand Mosque, Al Maryah Island, Yas Island and Ferrari World Abu Dhabi, Dubai Metro, the Bahrain Financial Harbour and the Jabal Omar Development in the Holy City of Mecca in the Kingdom of Saudi Arabia.