Tabreed wins award for best Local Currency Loan Deal

The Tabreed team at Bond, Loans and Sukuk Awards Middle East on held on December 7 at the Ritz

UAE’s National Central Cooling Company (Tabreed) has won the Local Currency Loan Deal of the Year at the Bond, Loans and Sukuk Awards Middle East, which was held on December 7, at the Ritz Carlton JBR, Dubai.

Tabreed secured a club loan through a AED1.5bn (US$408m) ten-year Sharia-compliant facility, enabling the company to diversify its funding base, extend its debt maturity profile and lower its financing costs.

Jasim Thabet, CEO, Tabreed, said “This award confirms that our Shari’a complaint loan is a best in class facility that not only ensures that Tabreed stock is available to Islamic investors, but also adds value to existing shareholders. The Local Currency Loan Deal of the Year Award recognizes the hard work and dedication of the Tabreed team, participating banks, lawyers and advisors.”

Thabet said, “We are honored to be recognized in the category for our achievements by a jury of the most influential international investors from leading banking and finance institutions.”

According to Tabreed, the new Sharia-compliant facility, while allowing to secure better terms on previous loan, also served the dual purpose of opening the company up to Sharia-compliant equity investors.

The innovative Islamic structure, based on the sale and purchase of refrigeration capacity, with Tabreed selling that capacity to generate revenue to service the financing and pay the principal amount, is a first for the sector, the company said.