Tabreed Secures AED 1.8B Green Loan Facility
Tabreed, a leader in district cooling solutions, has announced securing an AED 1.8 billion green loan facility to bolster its future operations.
Summary
Tabreed has secured an AED 1.8 billion green loan from Emirates NBD and Mashreq, aimed at supporting future operations and capitalizing on growth opportunities.
National Central Cooling Company PJSC, popularly known as Tabreed, has made a significant stride in its financial strategy by securing an AED 1.8 billion green loan facility. This move, backed by Emirates NBD and Mashreq, not only underscores the company's commitment to sustainable growth but also positions it strategically for future expansion.
Founded in 1998, Tabreed has been a pioneering force in the GCC's district cooling sector, providing energy-efficient and environmentally-friendly cooling solutions. The company operates over 83 plants across the region, delivering over a million Refrigeration Tons (RT) to a variety of sectors including government, commercial, and residential projects.
The newly secured loan facility, which constitutes approximately 63% of Tabreed's total capital, is structured as a dual-tranche facility in AED and USD, compliant with Sharia principles. Notably, AED 1 billion of this facility is designated as a green tranche, reflecting Tabreed's ongoing commitment to sustainability and environmental responsibility.
With a tenor of six years, the loan is designed to support Tabreed's operational requirements and to capitalize on potential growth opportunities. This strategic financial maneuver is expected to enhance the company's liquidity, enabling it to explore and invest in new projects that align with its core mission of providing sustainable cooling solutions.
From an investment perspective, Tabreed's proactive approach to securing this substantial green loan facility demonstrates a robust commitment to sustainability and strategic growth. The company's established presence in the GCC's district cooling market, combined with its forward-thinking financial strategies, suggests a promising outlook for investors.
Given the company's solid market position and its strategic financial planning, investors might consider a buy position on Tabreed. The secured loan not only strengthens Tabreed's financial footing but also provides a platform for future growth and expansion in the rapidly evolving energy sector.
Source
Summary
Sean Magee, Secretary of the Board of Directors, announced on 28 October 2025 that Tabreed has secured a green loan facility valued at AED 1.8 billion. The financing, provided by Emirates NBD and Mashreq, makes up approximately 63% of the company's total capital. The loan has a six-year term and is structured as a dual-tranche facility in AED and USD, complying with Sharia principles. An equivalent of AED 1 billion is designated as the green tranche. The purpose of the loan is to support Tabreed's future operational needs and leverage potential growth opportunities.
