Tabreed Launches $700 Million Green Sukuk
Tabreed has announced the pricing of its $700 million Green Sukuk, aiming to finance sustainable projects.
Summary
Tabreed has priced a $700 million Green Sukuk, rated investment grade by Moody's and Fitch, to fund eco-friendly projects.
National Central Cooling Company PJSC, commonly known as Tabreed, has made a significant stride in the financial markets by pricing a $700 million Green Sukuk. This strategic move aligns with the company’s commitment to sustainability and innovation in district cooling solutions.
Tabreed, headquartered in the UAE, has established itself as a leader in providing energy-efficient district cooling systems across the GCC. With a robust portfolio of 83 plants, the company services major government, commercial, and residential projects, delivering over a million Refrigeration Tons (RT).
The Green Sukuk, priced at a competitive profit rate of 5.279% for a five-year tenor, reflects Tabreed's strong market position and its commitment to sustainable finance. The issuance is backed by investment-grade ratings from Moody's and Fitch, rated at 'Baa3' and 'BBB', respectively. These ratings underscore the company's financial stability and creditworthiness.
The proceeds from the Sukuk will be directed towards financing or refinancing projects that align with Tabreed’s Green Financing Framework. This initiative not only reinforces Tabreed's dedication to environmental responsibility but also positions the company as a pioneer in integrating sustainable practices within the district cooling industry.
Given the strategic importance of this issuance and the growing demand for sustainable investments, the outlook for Tabreed appears promising. The Green Sukuk not only enhances the company's financial flexibility but also strengthens its reputation as a socially responsible enterprise.
For investors, Tabreed's Green Sukuk offers an attractive opportunity to engage in sustainable finance while benefiting from the company's stable financial performance. The investment-grade ratings provide an added layer of security, making this an appealing option for those looking to diversify their portfolios with green investments.
Considering the company's strong market position, commitment to sustainability, and favorable credit ratings, the recommendation for investors is to buy the Green Sukuk. This investment aligns with the growing trend of environmentally conscious investing and offers a stable return profile.
Source
Summary
Sean Magee, the Board Secretary, informed H.E. Waleed Saeed Abdul Salam Al Awadhi, CEO of the Securities & Commodities Authority, and H.E. Hamed Ahmad Ali, CEO of the Dubai Financial Market, about the pricing of USD 700 million green sukuk by the National Central Cooling Company PJSC ("Tabreed"). These sukuk are issued in a Regulation S format with a five-year tenor and a profit rate of 5.279%. The issuance is supported by investment-grade credit ratings from Moody's and Fitch, rated "Baa3" and "BBB" respectively. The proceeds will be used to finance or refinance projects aligned with Tabreed’s Green Financing Framework. The sukuk is expected to be settled this week.
