5-yr facility with Islamic & conventional tranches; pricing not available
ABU DHABI: The UAE-based international District Cooling giant National Central Cooling Company (Tabreed) has announced the successful syndication of a landmark term-loan facility of $692 million (AED2.54 billion).
The facility was pre-funded by HSBC Bank Middle East in March 2020, as part of the company’s acquisition funding of 80 per cent stake in Emaar Properties’ Downtown Dubai district cooling business.
The $692 million loan has a tenor of 5 years (until March 2025) and was structured as a multi-tranche syndicated facility with Islamic and conventional tranches.
Against a backdrop of unprecedented market conditions and related loan market volatility and price dislocation, the syndication was successfully closed and over-subscribed by a diverse group of nine international, regional and local banks. According to a statement, in addition to financing the acquisition of Tabreed’s stake in the Downtown Dubai district cooling business, the facility will also support the development of a new state-of-the-art district cooling plant in Downtown Dubai.
Commenting on the successful syndication of the facility, Bader Al Lamki (seen in the picture) , Chief Executive Officer at Tabreed, said the successful syndication of this loan facility underscores Tabreed’s strong business fundamentals, the solid relationships with its key partnering banks and the confidence the financial markets have in the company’s expansion projects, both in Dubai and across the region.
HSBC, ADIB jt underwriters
HSBC and ADIB acted as joint underwriters, bookrunners, initial mandated lead arrangers as well as global facility agent and investment agent, respectively for the facility.
The facility saw participation from nine banks, with over 40 per cent of the deal subscribed to by regional and international banks with strong anchorage by the UAE banking market.
Emirates NBD Capital Ltd and Samba acted as mandated lead arrangers on the facility. The facility represents a milestone syndicated facility in support of a major acquisition by a government-related entity in 2020 and marks Tabreed’s successful return to the syndicated market.