Tabreed, the leading district cooling company, has raised $490 million (AED 1.8 billion) in new bank debt to support its strategic growth initiatives and optimize its capital structure.
The new loan is part of Tabreed’s plans to finance the company’s capital needs and diversify its funding sources, including funding investment and growth requirements.
The loan facility has a tenor of six years and is financed by Emirates NBD and Mashreq. The facility is fully Shariah-compliant and is structured as a dual-tranche (AED/USD), reflecting Tabreed’s commitment to inclusive financing and alignment with regional investor preferences.
Notably, $272 million (AED 1 billion) of the facility has been structured as green financing, underscoring the company’s dedication to sustainability and environmental stewardship.
Khalid Al Marzooqi CEO- Tabreed
“This successful financing is a testament to the strength of our business model and the trust we have built with our banking partners. It enables us to pursue strategic investments that accelerate our expansion and drive long-term value, while reinforcing our commitment to responsible and sustainable financial practices.”
“Shariah-compliant financing is a key pillar of our capital strategy, reflecting our commitment to financial inclusion and alignment with the values of our stakeholders. By integrating Islamic finance principles into our funding mix, we are able to access a broader pool of liquidity while maintaining our investment-grade credit profile. The successful raising of this debt not only supports our strategic M&A, but also proactively strengthens our balance sheet by optimizing our debt maturity schedule and maintaining a strong financial foundation,” said Adel Al Wahedi, Tabreed’s Chief Financial Officer.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said that this transaction marks a significant milestone in Tabreed’s financing strategy, supporting the development and upkeep of critical infrastructure assets across the UAE. The innovative, multi-currency financing structure seamlessly integrates both Islamic financing principles and green finance standards within the documentation.
Joel Van Dusen, Group Head of Corporate and Investment Banking at Mashreq, welcomed the cooperation with Tabreed, and stated that, “The Shariah-compliant and green financing structure exemplifies our shared commitment to sustainable innovation and inclusive capital solutions.”
