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Close up shoot for saudi riyal and coins in sacks bag. Image used for illustrative purpose. Getty Images
UAE district cooling company Tabreed has priced its $700 million Reg S dollar-denominated benchmark green sukuk.
The five-year senior unsecured Ijara / Murabaha is priced at Treasures +115 basis points (bps), with a fixed profit rate of 5.29%, semi-annual in arrear.
The order books were in excess of $2.5 billion, excluding joint lead manager (JLM) interest.
The issuance is part of the Tabreed’s $1.5 billion Trust Certificate Issuance Programme and will be listed on the London Stock Exchange.
Banks mandated include Citi and Standard Chartered Bank as Joint Global Coordinators and Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners. Abu Dhabi Commercial Bank has been mandated as Co-Manager.
Citi, First Abu Dhabi Bank and Standard Chartered are acting as Joint Green Structurers.
Earlier this month, the Dubai-listed firm said it was looking to refinance its debt by evaluating various options.
Tabreed posted a full-year net profit of AED 570 million ($155.2 million) for 2024, up by 32% from the previous year.
The company is rated Baa3 (stable) by Moody’s and BBB (stable) by Fitch.
(Writing by Bindu Rai, editing by Seban Scaria)
