Abu dhabi: Tabreed, the leading district cooling company, today announced the successful raising of AED1.8 billion 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.
According to Emirates News Agency, the AED1.8 billion loan (the facility) has a tenor of six years and is financed by Emirates NBD and Mashreq. The facility 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, AED1 billion of the facility has been structured as green financing, underscoring the company’s dedication to sustainability and environmental stewardship.
Khalid Al Marzooqi, Chief Executive Officer of Tabreed, remarked that this successful financing is a testament to the strength of the business model and the trust built with banking partners. It enables strategic investments that accelerate expansion and drive long-term value while reinforcing a commitment to responsible and sustainable financial practices.
Adel Al Wahedi, Tabreed’s Chief Financial Officer, stated that Shariah-compliant financing is a key pillar of their capital strategy, reflecting a commitment to financial inclusion and alignment with the values of stakeholders. By integrating Islamic finance principles into their funding mix, Tabreed is able to access a broader pool of liquidity while maintaining an investment-grade credit profile. The successful raising of this debt supports strategic M and A and strengthens the balance sheet by optimising the debt maturity schedule.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, mentioned that this transaction marks a significant milestone in Tabreed’s financing strategy, supporting the development and upkeep of critical infrastructure assets across the UAE. Joel Van Dusen, Group Head of Corporate and Investment Banking at Mashreq, welcomed the cooperation with Tabreed, highlighting the shared commitment to sustainable innovation and inclusive capital solutions.
The strong appetite from banks reinforces Tabreed’s reputation as a high-quality credit and its ability to access competitive funding across markets. The company remains focused on maintaining robust liquidity and prudent leverage, ensuring its capital structure supports both near-term execution and long-term value creation.