Tabreed Settles $500M Sukuk, Highlights Financial Strength

National Central Cooling Company PJSC, better known as Tabreed, has announced the successful settlement of its $500 million Trust Certificates, originally issued in 2018 and due in 2025. This landmark event marks a significant milestone in the company's strategic financial management and reinforces its position as a leading player in the district cooling sector.

The Sukuk, issued under a Regulation S format and listed on the London Stock Exchange, carried a fixed 5.5% profit rate and was oversubscribed by 50%, indicating robust investor confidence. The issuance was supported by Tabreed’s investment-grade ratings from Moody’s and Fitch, which were firsts for the company at the time.

As part of its proactive liability management strategy, Tabreed had already repurchased trust certificates worth $249.5 million before maturity. The remaining balance of $250.5 million has now been fully settled, underscoring the company's disciplined approach to managing its capital structure. This move is further supported by Tabreed’s recent success in raising an AED 1.8 billion Shariah-compliant debt facility, highlighting its strong liquidity position.

Tabreed’s CEO, Khalid Al Marzooqi, emphasized the financial strength and maturity the company has built over the years. He stated, 'This repayment reflects the financial strength and maturity Tabreed has built over recent years. As we continue to expand across the region, maintaining balance sheet resilience remains central to our long-term strategy.'

Adel Al Wahedi, the CFO, added that this settlement concludes an important chapter in Tabreed’s capital markets journey. The company’s robust credit fundamentals, reinforced by investment-grade ratings from Moody’s and Fitch, continue to affirm its financial strength and prudent risk management.

For investors, the successful settlement of the Sukuk and the company’s strategic financial management suggest stability and a well-managed growth trajectory. Given the company's demonstrated ability to manage its liabilities effectively and maintain a strong liquidity position, investors might consider holding their position in Tabreed. The company’s focus on sustainability and disciplined growth further enhances its investment appeal.

In conclusion, Tabreed’s recent financial maneuvers highlight its robust market credibility and strategic foresight. As the company continues to expand its footprint across the GCC, it remains a key player in the district cooling sector. Investors should keep a close watch on Tabreed’s future developments as it continues to build on its financial strengths.