Tabreed finalizes a USD 700 mn sukuk issuance with 3.5x oversubscription at USD 2.5 bn

UAE district cooling company Tabreed has priced its USD 700 mn green sukuk, drawing strong investor demand with order books exceeding USD 2.5 bn, excluding joint lead manager interest, Zawya reports. Tabreed holds a Baa3 credit rating with a stable outlook from Moody’s and a BBB rating from Fitch with a stable outlook.

The details: The five-year senior unsecured Ijara/Murabaha instrument is priced at Treasuries plus 115 basis points, with a yield of 5.29%. The sukuk is part of Tabreed’s USD 1.5 bn Trust Certificate Issuance Program, and will be listed on the London Stock Exchange.

Background: 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. This includes USD 500 mn in bonds maturing in October 2025 and a USD 700 mn loan due in March 2025.

What's next? 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.

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.