Tabreed Approves $2 Billion Bond Issuance
Tabreed's AGM approves issuance of bonds up to $2 billion.
Summary
Tabreed's shareholders approve a $2 billion bond issuance, signaling growth and expansion in the district cooling sector.
In a significant move that underscores its strategic growth plans, National Central Cooling Company PJSC, widely known as Tabreed, has received shareholder approval to issue non-convertible bonds and sukuk worth up to USD 2 billion. This decision was made during the company's Annual General Assembly meeting held on March 25, 2025.
Tabreed, a leader in the district cooling industry in the Gulf Cooperation Council (GCC) region, continues to demonstrate its commitment to expanding its infrastructure and enhancing its service offerings. The approved bond issuance will provide the company with the necessary capital to invest in new projects and technologies, thereby reinforcing its position as a key player in the energy-efficient cooling solutions market.
The resolution grants the Board of Directors the authority to issue these financial instruments in one or more tranches, either directly or through a special purpose vehicle. The flexibility to choose the date of issuance and the jurisdiction ensures that Tabreed can optimize its financing strategy according to market conditions. This strategic financial maneuver is expected to support Tabreed's ongoing projects and potential new ventures, aligning with the company's long-term vision of sustainable growth.
Given the company's strong foothold in the GCC and its robust operational framework, the market's response to this bond issuance is anticipated to be positive. Investors looking for opportunities in the utility sector may find Tabreed's offering attractive, particularly considering the company's track record of delivering energy-efficient solutions and its strategic expansion plans.
From an investment perspective, Tabreed's move to secure additional funding through bonds and sukuk indicates a proactive approach to capital management and growth. The company's ability to attract investment at this scale suggests confidence in its business model and future prospects. As such, for investors currently holding shares in Tabreed, the recommendation is to hold. The upcoming projects and potential market expansion could translate into increased shareholder value over time.
Source
Summary
The Annual General Assembly Meeting of the National Central Cooling Company PJSC ("Tabreed") took place on March 25, 2025. During this meeting, shareholders approved a special resolution authorizing the company's Board of Directors to issue non-convertible bonds, sukuk, or similar instruments. The issuance can be conducted directly or through a special purpose vehicle, in one or more tranches, with a total nominal value not exceeding USD 2 billion or its equivalent in other currencies. The Board of Directors is also authorized to determine the date of issuance and other related terms.
