Tabreed, a leading district cooling company in the UAE, has announced the successful closure of its inaugural AED600 million ($163.4 million) green revolving credit facility.

 

A five-year agreement was signed by Tabreed in this regard on the sidelines of COP28, with First Abu Dhabi Bank (FAB) as the green co-ordinator, alongside Abu Dhabi Commercial Bank (ADCB) and Emirates NBD, said the company in a statement. 

 

The facility is designed to introduce highly efficient cooling solutions into the GCC market, meeting the growing demand for sustainable and innovative technologies, it stated.

 

As an active participant in the Cool Coalition, a prestigious United Nations initiative, Tabreed's operations and objectives are intricately linked with the United Nations Sustainable Development Goals (SDGs), it added. 

 

The AED600 million raised through this RCF will be exclusively allocated to finance projects and investments that adhere to Tabreed's Green Finance Framework, established in 2022, said the statement. 

 

These encompass diverse initiatives, including the development, procurement, and operation of District Cooling schemes. The funds will also support projects dedicated to enhancing Energy and Water Efficiency and those focused on proficient Wastewater Management, it added.

 

On the successful closing of the green RCF, Chief Financial Officer Adel Al Wahedi said: "This financing agreement is a testament to Tabreed's unwavering commitment to sustainable practices. By allocating the proceeds exclusively to green projects, we aim to make a significant impact on environmental preservation and drive advancements in cooling technologies."

 

"We are proud to partner with FAB, ADCB, Emirates NBD Capital Limited [as Mandated Lead Arranger] and Emirates NBD Bank [as Original Lender], who share our vision for a more sustainable future," he stated.

 

Fawaz Abusneineh, Acting Head of Global Corporate Finance at FAB, said: "At FAB, we believe that district cooling has a major role to play in the Middle East’s energy efficient future as it is more reliable, more energy efficient, and has less negative environmental impact than standard approaches to air-conditioning."

 

"This partnership aligns with and amplifies our commitment to lend, invest, and facilitate over $135 billion in sustainable and transition financing by 2030. Together we are ensuring that the UAE’s built environment can transition towards a greener future," he added.

 

"We are proud to partner with Tabreed in our collective pursuit of the UAE’s ambition for a net zero economy. This collaboration is a testament to our commitment to providing sustainable financing solutions and supporting our clients in their transition towards environmental sustainability," said a spokesman for ADCB. 

 

As Sustainalytics’ highest rated diversified bank in the GCC for ESG, ADCB is proud to be bringing its experience and capabilities to support its clients’ green ambitions, he added.

 

Hitesh Vithal Asarpota, CEO of Emirates NBD Capital said: "We are delighted to support Tabreed’s efforts in further decarbonising the district cooling sector. This agreement comes in line with our Sustainable Finance Framework, reinforcing our commitment towards sustainability."

 

"As a leading banking group in the region, ENBD is fully aligned with the UAE’s journey to Net Zero, and through such agreements, we enable our stakeholders to play an active role in this transition," he added.-TradeArabia News Service