{"id":100895,"date":"2025-02-20T00:00:00","date_gmt":"2025-02-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-tabreed-eyes-usd-2-bn-ncd-issuance-as-it-looks-to-refinance-debt-arab-states-push-alternative-gaza-plan-with-potential-usd-20-bn-in-funding\/"},"modified":"2025-02-20T00:00:00","modified_gmt":"2025-02-20T00:00:00","slug":"this-morning-tabreed-eyes-usd-2-bn-ncd-issuance-as-it-looks-to-refinance-debt-arab-states-push-alternative-gaza-plan-with-potential-usd-20-bn-in-funding","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/02\/20\/this-morning-tabreed-eyes-usd-2-bn-ncd-issuance-as-it-looks-to-refinance-debt-arab-states-push-alternative-gaza-plan-with-potential-usd-20-bn-in-funding\/","title":{"rendered":"THIS MORNING: Tabreed eyes USD 2 bn NCD issuance as it looks to refinance debt + Arab states push alternative Gaza plan with potential USD 20 bn in funding"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>It\u2019s nearly the end of the week, but a news slowdown is nowhere in sight. The big stories today include: more debt issuances<\/strong> from Emirates NBD and Sharjah Islamic Bank; US chipmaking giant<\/strong> Qualcomm <\/strong>establishing presence in Abu Dhabi; and Dubai tapping a Deloitte-led consortium for the seventh phase of Mohammed bin Rashid Solar Park. <\/p>\n

Plus: <\/strong>We have news of a recent divestment<\/strong> of an asset in Shanghai from the Abu Dhabi Investment Authority<\/strong>, an upsized loan<\/strong> for BGN<\/strong> from local lenders, and bns of AED<\/strong> worth of new contracts inked at Idex<\/strong> and Navdex<\/strong>. Let\u2019s dive in. <\/p>\n

\u26c5WEATHER- <\/strong>Expect <\/strong>a partly cloudy day today along with possibility of light rainfall in <\/strong>some areas<\/strong>, the National Center of Meteorology forecasts (pdf)<\/a>. Temperatures today will hit 28\u00b0C in Dubai<\/strong> with an overnight low of 20\u00b0C, and 23\u00b0C in Abu Dhabi<\/strong> before cooling to an overnight low of 20\u00b0C.<\/p>\n

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CORRECTION- <\/strong>We incorrectly reported yesterday that Mubadala\u2019s aerospace maintenance arm Sanad Group and Pratt and Whitney are working on an aircraft engine maintenance, repair, and overhaul (MRO) services facility to provide MRO services for Sanad. The facility will in fact service engines for the Airbus A320neo and A220 aircraft, as well as for the Embraer E-Jet E2 aircraft family upon completion in 2028, according to a press release<\/a>. Tawazun Council will also invest in the project. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>Tabreed<\/strong> eyes USD 2 bn NCD issuance:<\/strong> District cooling firm Tabreed\u2019s board will seek shareholder approval on 25 March to issue up to USD 2 bn in additional non-convertible debt instruments, according to a disclosure (pdf<\/a>)<\/a>. The issuance may take place in one or more tranches, either directly or through a special purpose vehicle. The firm had earlier confirmed that news of its plans to refinance debt are \u201caccurate\u201d and that it is \u201cevaluating various refinancing options,\u201d according to a separate disclosure (pdf)<\/a> submitted to the DFM on Tuesday.<\/p>\n

We knew this was coming: <\/strong>Tabreed CFO Adel Salem Al Wahedi had said the company plans to issue USD 1.2 bn in green bonds or sukuk<\/a> to refinance debt this year, including USD 500 mn bonds maturing in October 2025 and a USD 700 mn loan due in March 2025. It also completed a tender offer last April<\/a> to repurchase USD 500 mn outstanding trust certificates due this year. The company has repurchased USD 240 mn in outstanding sukuk so far and currently has a BBB credit rating with a stable outlook from Fitch, Zawya<\/a> reports.<\/p>\n

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<\/a> #2- <\/strong>Arab <\/strong>states push alternative Gaza plan with potential USD 20 bn in funding<\/strong>: <\/strong>Arab leaders are meeting in Riyadh today to finalize a regional post-war plan for Gaza, which could include up to USD 20 bn in reconstruction funding, Reuters<\/a> reports, citing two Egyptian security sources. Egyptian President Abdel Fattah El Sisi is set to discuss the proposal, which aims to counter US President Donald Trump\u2019s plan to place Gaza under US control and relocate Palestinians to Jordan and Egypt \u2014 a move widely rejected by regional leaders \u2014 with officials from Saudi Arabia, Jordan, the UAE, and Qatar, according to sources in the know.<\/p>\n

Both Gulf and Arab countries would contribute to the fund<\/strong>, which some Arab officials believe could appeal to Trump, given that it could benefit US and Israeli companies. <\/p>\n

Yesterday, UAE President Mohamed bin Zayed Al Nahyan reaffirmed the UAE\u2019s rejectio<\/strong>n of any forced displacement of Palestinians<\/strong> and stressed the need for a Gaza reconstruction-linked path to a two-state solution during a meeting with US Secretary of State Marco Rubio in Abu Dhabi, Wam<\/a> reports. Rubio was on a wider Middle East tour that saw him land in Saudi Arabia and Israel earlier. <\/p>\n

The plan will be reviewed ahead of the Arab Summit in Cairo on 4 March. <\/strong>It reportedly calls for the establishment of a Palestinian governing body for Gaza \u2014 excluding Hamas \u2014 and international oversight of reconstruction efforts.<\/p>\n

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<\/a> #3- <\/strong>The<\/strong> Dubai International<\/a><\/strong>Financial Center<\/a><\/strong> (DIFC) is preparing to grant licenses to 40 <\/strong>global hedge funds<\/strong>, its Chairman Eisa Kazim told Al Khaleej<\/a>. The 75 funds operating in the DIFC at the end of last year reflected global interest in the center, Kazim said. The center recorded a 37% jump in revenues y-o-y to AED 1.8 bn<\/a> in 2024, driven by private wealth and hedge funds.<\/p>\n

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<\/a> #4- <\/strong>Adnoc to invest u<\/strong>p to USD 550 mn into its Emirati rigs:<\/strong> Adnoc Drilling<\/a> will allocate between USD 350 mn and USD 550 mn, of the USD 1 bn<\/a> it earmarked for investments this year, to add rigs and oil field service equipment in the UAE as it works towards its goal of reaching 151 rigs by 2028, the company\u2019s chief financial officer Youssef Salem told Arab News (watch, runtime: 1:56<\/a>) on the sidelines of the Capital Markets Forum in Riyadh.<\/p>\n

REMEMBER- <\/strong>Adnoc is aiming to raise USD 1 bn<\/a> as it looks to refinance debt and fund expansion, with USD 750 mn of this going towards acquisitions through its JV Enersol. Salem added that 2024 saw it bring in USD 4 bn in revenues, and expected the onshore segment to reach USD 2 bn in revenues next year, with offshore expected to bring in USD 1.4 bn and oil field services accounting for USD 1.2 bn in 2025.<\/p>\n

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#5- EWEC opens 1Q 2025 CECs auction:<\/strong> Emirates Water and Electricity Company (EWEC) has opened registrations for its 1Q 2025 Clean Energy Certificates (CECs) auction, according to a press release<\/a> issued on Wednesday. CECs enable companies to reduce Scope 2 emissions. The auction is scheduled to close on 14 March. <\/p>\n

ICYMI- <\/strong>The CECs include wind energy CECs<\/a> after Ewec debuted<\/a> the certificates in 3Q 2024. They were also included in the company\u2019s 4Q 2024<\/a> registration.<\/p>\n

DATA POINTS- <\/p>\n

#1-<\/strong> Real estate transactions in Ras Al Khaimah increased 118% year-on-year to exceed <\/strong>AED 15 bn in 2024<\/strong>, driven by strong sales, mortgage activity, and growing investor interest, Economy<\/a> Middle East reports, citing a recent data from Ras Al Khaimah\u2019s Municipality. The emirate recorded nearly 3k sales transactions worth over AED 6 bn, 1.2k mortgage transactions exceeding AED 4 bn, and 845 assignment transactions surpassing AED 3 bn, Wam<\/a> reports. The boom is fueled by prime waterfront developments, expanding infrastructure, and high-end projects like Wynn Al Marjan Island.<\/p>\n

#2- Dubai\u2019s Jebel Ali Port handled a record 15.5 mn TEUs in 2024, mar<\/strong>king a 7.4% y-o-y increase<\/strong> and accounting for nearly 18% of DP World\u2019s total global container throughput of 88.3 mn TEUs during the same period, according to a statements here<\/a> and here (pdf)<\/a>.The port saw breakbulk cargo handled rise up 23% y-o-y to 5.4 mn metric tonnes, reaching its second-highest level of performance in almost a decade. Imports accounted for 80% of total shipments handled at Jebel Ali port, driven by the region's expanding investments in infrastructure and renewable energy.<\/p>\n

Behind the numbers:<\/strong> The firm attributes steady local and regional demand \u2013 particularly from Asia and the Indian Subcontinent \u2013 for driving up container throughput last year, regardless of geopolitical challenges, including disruptions to shipping in the Red Sea.<\/p>\n

PSA- <\/p>\n

It could now cost you up to AED 4k to litter in Abu Dhabi:<\/strong> Abu Dhabi\u2019s Department of Municipalities and Transport has revised the emirate\u2019s littering penalties based on the type of violation and its frequency, according to a statement<\/a>. Here\u2019s the breakdown: <\/p>\n