UAE district cooling company Tabreed’s USD 700 mn green sukuk issuance wrapped this week 2.6x oversubscribed, after an initial orderbook that saw investor demand exceed the size of the issuance by 4.3x, the company said in a press release on Wednesday. The issuance carried a 5.279% yield, the tightest-ever credit spread for a five-year UAE corporate sukuk with a similar rating.

The details: The five-year senior unsecured Ijara/Murabaha instrument was priced at Treasuries plus 115 basis points, with a yield of 5.279%. The sukuk is part of Tabreed’s USD 1.5 bn Trust Certificate Issuance Program, and will be listed on the London Stock Exchange. The proceeds of the sukuk issuance will go towards financing or refinancing projects under Tabreed’s Green Financing Framework.

What’s next for Tabreed’s issuances? Tabreed’s board will also seek shareholder approval on 25 March to issue up to USD 2 bn in an additional non-convertible issuance as part of its refinancing plans. Tabreed holds a Baa3 credit rating with a stable outlook from Moody’s and a BBB rating from Fitch with a stable outlook.

REMEMBER- Tabreed CFO Adel Salem Al Wahedi said last year that the company plans to issue green bonds or sukuk to refinance USD 1.2 bn in debt this year, including USD 500 mn in bonds maturing in October 2025 and a USD 700 mn loan due in March 2025.

ADVISORS- Citi and Standard Chartered acted as joint global coordinators. Joint lead managers included Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered, with Abu Dhabi Commercial Bank serving as co-manager. Citi, FAB, and Standard Chartered structured the green certification.

IN DEBT UPDATES FROM TURKEY-

The International Finance Corporation (IFC) is lending QNB Leasing USD 100 mn to boost energy transition financing for SMEs in Turkey, according to a press release issued Thursday. The five-year loan will support sustainable energy projects and blue finance initiatives, with at least 10% of the proceeds allocated to blue finance, focusing on sustainable water use. The funding will help QNB Leasing — a subsidiary of QNB Turkey — provide tailored services to SMEs looking to upgrade equipment and cut energy costs, while also helping the bank launch new blue lending projects targeting water resource sustainability.

Not the first time for the trio: QNB Turkey last October issued Turkey’s first blue bond worth USD 25 mn, with the IFC acting as the sole investor, alongside the bank’s first green bond issuance of up to USD 100 mn.

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