Dubai utility company Tabreed asks banks to arrange a 5-year Green Sukuk
Dubai’s National Central Cooling Company (Tabreed), mostly owned by Abu Dhabi’s Mubadala, has asked banks to arrange a five-year green sukuk in US dollars.
Sukuk Details
Tabreed plans to issue a green sukuk (Islamic bond) as part of its $1.5 billion program, depending on market conditions, according to Zawya.
The company has appointed several banks for this process. Citi and Standard Chartered Bank (SCB) will be the main global coordinators. Citi, Emirates NBD, First Abu Dhabi Bank (FAB), HSBC, and SCB will act as lead managers and bookrunners. Abu Dhabi Commercial Bank will be the co-manager. Citi, FAB, and SCB will also handle the green structuring of the sukuk, marking Tabreed’s return to this market.
Last week, the Dubai-listed company said it was considering different ways to refinance its debt.
Tabreed’s Financial Results
In 2024, Tabreed earned $653.4 million (AED 2.4 billion) in revenue, a 4% increase from 2023. This growth was mainly due to a 5% rise in cooling consumption, reaching 2.7 billion refrigeration ton hours (RTH).
The company’s net profit after tax was $155.2 million (AED 570 million), 32% higher than in 2023. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 5% to $326.7 million (AED 1.2 billion), with a 51% profit margin.
Tabreed expanded its cooling capacity by 23,756 refrigeration tons (RT), bringing the total to 1.325 million RT. This was mainly due to two new plants in the UAE and Oman. The company also increased capacity at existing plants in India and Egypt to meet customer demand.
Growing Market
Fitch predicts that ESG (environmental, social, and governance) sukuk will surpass $50 billion by 2025, driven by investor interest, diversification efforts, and sustainability programs in some Muslim-majority countries.
Published: 25th February 2025
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