Empower settles loan instalment of $40mn ahead of time
Emirates Central Cooling Systems Corporation (Empower), the world’s largest district cooling services provider, has settled its semi-annual loan instalment two months before its maturity on December 31, 2017
Emirates Central Cooling Systems Corporation (Empower), the world’s largest district cooling services provider, has settled its semi-annual loan instalment two months before its maturity on December 31, 2017.
The pre-settled loan instalment amounting to $40mn (Dh147mn) forms part of Empower’s syndicated loan facility from a consortium of international and local banks and financial institutions.
Ahmed Bin Shafar, CEO, Empower, said: “Empower has always been prudent and strategic when investing in plants and network infrastructure based on the actual demand. The company has recorded steady and sustainable growth as a result of this effort, enabling us to meet our commitments as per agreed timelines. Presently, we have significant capital expenditures needed to expand our capacity in various projects such as Jumeirah Village South, International Media Production Zone (IMPZ), Business Bay, and Dubai Land, amongst others. The new projects will be funded through a mix of debt and internal accruals.”
Bin Shafar added: “Out of the total loan portfolio of approximately AED 2.6 billion, Empower has already settled AED 1.7 billion which demonstrates the robustness and sustainability of Empower’s business model and effectiveness of its financial strategy. Banks and financial institutions have appreciated Empower’s business strategy and value their investments in our business.”
Empower offers district cooling services which significantly reduce energy consumption as compared to conventional air conditioning systems.
District cooling services achieve economies of scale by using centralised plants instead of individual cooling units in each building. The centralised system results in reduced capital and operating costs, thus lowering air-conditioning set-up and energy costs per building.