Tabreed signs $53.4mn district cooling plant loan
The district cooling plant will serve the new Dubai parks and resorts and is said to be nearing completion in time for the parks' opening.
National Central Cooling Company, Tabreed, has signed a $53.4mn long term limited recourse project finance facility with Emirates NBD for the district cooling plant it is developing in Dubai.
The district cooling plant will cater for Dubai Parks and Resorts, which includes Legoland Dubai, Bollywood Park, Motiongate and Riverland.
The plant is said to be nearing completion and will be commissioned in time for the parks' opening.
“Tabreed’s approach to financing new projects is to utilise long term project financing wherever possible which we believe is the best way of financing our assets and maximising value for all stakeholders,” said Jasim Husain Thabet, Tabreed?s Chief Executive Officer.
“This loan facility with Emirates NBD is a landmark deal as it is amongst the first district cooling transactions completed in the UAE under a limited recourse project finance structure for a Greenfield development."
Jonathan Morris, General Manager, Wholesale Banking at Emirates NBD said that the bank was committed to delivering district cooling services that enable Dubai Parks and Resorts to make significant savings to their energy consumption and positively contribute to the environment.
"This is our first collaboration with Tabreed and we are pleased to participate in the financing of the district cooling plant for the new Dubai Parks and Resorts. This is an important development which will further support the UAE’s economic diversification efforts and reinforce Dubai’s position as a tourist destination,” said Morris.
In 2014, Tabreed signed a long term concession to provide 45,600 tons of cooling to the new Dubai Parks and Resorts development in Jebel Ali.