Home / TABREED signs AED91M Islamic deal with HSBC

TABREED signs AED91M Islamic deal with HSBC

The National Central Cooling Company (PJSC), better known as Tabreed, signed a AED91 million Islamic leasing facility with HSBC.

The National Central Cooling Company (PJSC), better known as Tabreed, signed a AED91 million Islamic leasing facility with HSBC.

The deal will help Tabreed finance its new Muroor Street and Sheikh Zayed Sports City cooling plants in Abu Dhabi.

The transaction was structured by HSBC Amanah Finance as an ijarah (leasing) contract in compliance with Shariah law, and was arranged and underwritten by HSBC Bank Middle East.

The banking consortium supporting the deal comprises Mashreqbank, United Arab Bank and The Saudi British Bank (40% owned by HSBC).

Tabreed aims to build, manage, operate and own district-cooling plants in all the United Arab Emirates. Tabreed is the first company in the Middle East to commercialise district-cooling technology.

This transaction represents HSBC’s first Islamically structured facility in Abu Dhabi.

“There is a significant corporate demand in Abu Dhabi for Islamic financing. We feel that our growing reputation for innovation and success in the area of Islamic finance, together with the Tabreed transaction, provides us an important launching pad in this key market,” said Charles Moncrieff, senior manager, HSBC Bank Middle East, Abu Dhabi Branch.

Tabreed is the only company in the UAE to offer district-cooling utilities, and currently has over 75,000 refrigerating tonnes under contract.

The company reported profits of Dh2.7 million for 2001, a drop of 12.9 per cent over the previous year.

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