Tabreed, the Middle East’s award-winning district cooling pioneer, has signed a US$ 100 million revolving credit facility with a group of financiers led by BNP Paribas to fund further expansion of the company’s operations.
The Facility has an initial maturity of one year and is subject to two 12 month extension options at each lender’s discretion. The Facility has a margin of 45 basis points (bps) per annum and a commitment fee of 13.5 bps per annum. The extension fee where applicable will be five bps flat per extension.
“Tabreed has won many new contracts recently which necessitate further investments to build plants that will supply cooling to all these new developments,” said Mohammed Saif Al Mazrouei, Chairman, Tabreed.
BNP Paribas is the mandated lead arranger and bookrunner as well as the facility agent for the deal while arrangers include Mashreqbank psc, National Bank of Bahrain BSC, National Bank of Oman (S.A.O.G.), National Bank of Fujairah P.S.C., Sumitomo Mitsui Banking Corporation, Brussels Branch, The Arab Investment Company S.A.A. and First Gulf Bank.
Tabreed recently announced record-breaking annual net profit for the financial year 2006, with an increase of 104.1%, over 2005. The company’s net profit increased to US$ 28.6 million compared to US$14 million in 2005.
The UAE-based company, with operations in six countries, generated revenues of US$128.73 million in 2006 - an increase of 18% over 2005 – and posted a gross profit of US$51.78 million for 2006, up from a previous 2005 high of US$41.61 million.
