Tabreed Secures $490 Million In New Bank Debt

The Abu Dhabi Securities Exchange (ADX)-listed Tabreed, the leading district cooling company in the UAE, on Tuesday announced the successful raising of $490 million new bank debt to support its strategic growth initiatives and optimise 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 $490 million loan has a tenor of six years and is financed by Emirates NBD and Mashreq, 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, $270 million of the facility has been structured as green financing, underscoring the company’s dedication to sustainability and environmental stewardship.

The strong appetite from banks reinforces Tabreed’s reputation as a high-quality credit and its ability to access competitive funding across markets. It remains focused on maintaining robust liquidity and prudent leverage, ensuring its capital structure supports both near-term execution and long-term value creation.

Strong Business Model

Tabreed CEO Khalid Al Marzooqi said that this successful financing is a testament to the strength of the company’s business model and the trust they have built with Tabreed’s 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,” Marzooqi added.

Tabreed’s Chief Financial Officer Adel Al Wahedi said that Shariah-compliant financing is a key pillar of the company’s capital strategy, reflecting their commitment to financial inclusion and alignment with the values of the stakeholders.

He added: “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 optimising our debt maturity schedule and maintaining a strong financial foundation.”

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, Qassim said.

Joel Van Dusen, Group Head of Corporate and Investment Banking at Mashreq, welcomed the cooperation with Tabreed, and said that the Shariah-compliant and green financing structure exemplified their shared commitment to sustainable innovation and inclusive capital solutions.