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.