Tabreed secures Dhs1.1bn in regional financing for 2009

Today's announcement follows the signing of an Dhs368m ijara financing for Tabreed from Abu Dhabi Commercial Bank (ADCB) in March of this year.

The Dhs750m loan from FGB will be used to fund the Company's 2009 capital expenditure. The March Dhs368m ijara financing from ADCB was used for the full-repayment of Tabreed's five-year $100m Sukuk, launched in 2005.

Commenting on both loan facilities, Sujit S. Parhar, Tabreed CEO, said:

"Since financing is the cornerstone of a utility company's business plan, we are pleased to have the support from the region's financial markets. Such support is important as Tabreed moves to the next stage of its growth."

"We have a significant capital expenditure programme plan for 2009 with major projects such as the Dubai Metro, Yas Island, and our joint ventures with Aldar and Sorouh, underway, and these financing agreements are important to the delivery of these projects," he added.

Tabreed CFO Steve Ridlington added, "Given the current condition of the financial markets, it is significant that Tabreed has demonstrated its ability to secure regional financing, which is testament to our robust expansion plans and the increasing importance of district cooling for regional growth and infrastructure investment ambitions."

"Whilst our business model requires significant upfront expenditure it also offers long-term, stable and sustainable returns. Tabreed has proven its ability to access the capital markets in even the most challenged conditions in a timely and sizeable manner," he added.

Over the past 12 months Tabreed has completed 10 district cooling plants, with 9 expected to come on-stream in the next three months adding an additional 229,000 tons of capacity. Tabreed operates 34 plants with total installed capacity of more than 400,000 tons.