Tabreed, a leading district cooling provider, has successfully raised $700 million through its first five-year green sukuk. This issuance marks a significant milestone under the company’s $1.5 billion trust certificate program. Moreover, the sukuk will be listed on the London Stock Exchange’s international securities market, enhancing Tabreed’s global financial presence.
Notably, the sukuk attracted strong demand from local, regional, and international institutional investors. As a result, it was oversubscribed nearly 2.6 times. The high investor interest was driven by Tabreed’s investment-grade credit ratings, which were reaffirmed by Moody’s (Baa3) and Fitch (BBB). This strong backing underscores the company’s financial stability and long-term growth potential.
Competitive Pricing and Green Investment Strategy
The sukuk was priced competitively with a yield of 5.28%, further demonstrating investor confidence in Tabreed’s business model. In addition, proceeds from the issuance will be used in accordance with the company’s Green Financing Framework. By doing so, Tabreed ensures that the funds directly support environmentally sustainable projects.
Furthermore, this strategic financing aligns with Tabreed’s commitment to sustainability. It also reinforces the company’s focus on energy-efficient district cooling, a critical component in reducing carbon emissions. As the demand for eco-friendly solutions continues to rise, Tabreed remains at the forefront of innovation in this sector.
Advancing the UAE’s Net-Zero Goals
According to CEO Khalid Al Marzooqi, this green sukuk aligns perfectly with Tabreed’s existing operations and future expansion plans. “The UAE has a clear roadmap for net-zero, and we are proud to play a crucial role in preventing large-scale carbon emissions while driving sustainable progress,” he said.
Currently, Tabreed operates 92 district cooling plants across six countries. Importantly, in 2024, it became the world’s first district energy company to achieve the Verified Carbon Standard certification. Consequently, this achievement allows the company to trade carbon credits in the voluntary market, further strengthening its position as a sustainability leader.
With this green sukuk, Tabreed continues to expand its sustainable financing initiatives. More importantly, by integrating environmental responsibility into its business model, the company is set to drive long-term growth while contributing to a greener future.
