Tabreed, a globally leading district cooling company, announced the successful raising of $700 million via an inaugural, five-year green sukuk.
This is the company’s first issuance under its new $1.5 billion trust certificate issuance programme.
The new sukuk will be listed and traded on the London Stock Exchange’s international securities market.
The company said the green sukuk issuance attracted strong institutional demand from high-quality local, regional and international investors, leading to the final issue being oversubscribed by nearly 2.6 times.
The high demand was supported by investment-grade credit ratings from Moody’s (Baa3) and Fitch (BBB), consistent with Tabreed’s corporate ratings.
The sukuk was competitively priced with a yield rate of 5.28 per cent.
Proceeds from this latest sukuk will be used in alignment with Tabreed’s Green Financing Framework, the company said.
CEO Khalid Al Marzooqi said the company’s first green sukuk is perfectly aligned with its existing businesses, while focussing on new developments.
“The UAE has an ambitious roadmap for net-zero and we are proud at Tabreed to play a vital role in preventing large-scale carbon emissions, while enabling societal progress through sustainable district cooling,” he said.
Currently operating 92 district cooling plants across six countries, Tabreed became the world’s first district energy company to achieve the ‘Verified Carbon Standard’ in 2024, able to trade carbon credits in the voluntary market as an emissions preventer.
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