Tabreed Plans to Sell 4.2 Billion Dirhams of Bonds

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By Haris Anwar  www.businessweek.com

May 31 (Bloomberg) — National Central Cooling Co., the refrigeration company that delayed payments on an Islamic bond last week, plans to raise 4.2 billion dirhams ($1.1 billion) from a debt sale.

Dubai metro
Dubai metro

The company’s shareholders approved the sale of Islamic or conventional bonds, Tabreed said in a statement to the Dubai bourse today. Shareholders also agreed to a proposal to cancel as much as 970 million shares at 1 dirham each.

Tabreed is in talks with banks to restructure about 3.7 billion dirhams of loans, the Chief Financial Officer Stephen Ridlington said May 27. The provider of cooling services for the Dubai Metro last week said it hasn’t made coupon payments due the previous week on its 1.7 billion-dirham Islamic bond after the board in April approved deferring annual payments as part of a recapitalization plan.

The company has about $663 million of Islamic debt outstanding. In March, it sought shareholders’ approval to restructure borrowings after posting its first full-year loss since listing in 2000.

That month it got a short-term financing facility of 1.3 billion dirhams from Abu Dhabi’s Mubadala Development Co. to complete its recapitalization.

–Editors: Shanthy Nambiar, Claudia Maedler

To contact the reporter on this story: Haris Anwar in Dubai at hanwar2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net