Emirates District Cooling (Emicool) announced the successful signing conclusion of Dhs793 million for a 10 years Islamic refinancing structured term loan in Dubai.
This was negotiated with the existing 7 banks that sanctioned a bridge loan in 2008 which matured in May 2011.
Mashreq Al-Islami, Islamic Banking Division of Mashreq was the Mandated Lead Arranger and co-ordinating bank for the transaction. In addition Mashreq was also the Security and Facility Agent. Other participating banks included Dubai Islamic Bank, Union National Bank, Commercial Bank of Dubai, Standard Chartered, Emirates NBD & Emirates Islamic Bank.
The transaction was secured by a Corporate Gurantee from Dubai Investments and Union Properties in equal proportion.
In May 2008, Emicool raised Dhs668 million Bridge Loan to cover the construction period, under an Islamic syndicated facility structure and bilateral loans from Mashreq and other banks for the construction of district cooling plants in Motor City and Dubai Investment Park. Facilities were intended to be refinanced at the end of construction period with a long term facility.
Abdul Aziz Bin Yagub Alserkal, chairman, Emicool, said: “Securing the 10-year refinancing plan has put Emicool on a firm growth path. This milestone reaffirms the success of our business model, which has also been validated earlier when we won the competitive syndication agreement in 2008.”
“Emicool has raced ahead to become the market leader in the UAE within nine years of its inception. The financial boost will help realise our long-term expansion goals such as investing in infrastructure, which will assist to offer quality products at competitive prices to capture a significant share of the market,” he added.
Adib Moubadder, Managing Director, Emicool said: “The maximum capacity of the plants serving the developments in Dubai is 300,300TR of which the installed capacity is 213,300TR. We provide continuous chilled water cooling services to over 10,000 customers, with the most efficient and highest quality service to support the growth of Dubai’s infrastructure with sustainable development and innovative technologies. For the past two years Emicool has won the gold award conferred by the International District Energy Association (IDEA) for the most buildings connected or committed to service beyond North America. The company is currently working on its plan to expand operations to KSA and Qatar”.
Amr El Nokaly, Head of Commercial Banking at Mashreq commented: “We are very pleased to play a major role in this deal as the MLA and contribute to its closure. Our constant objective is to assist clients with the necessary facilities and this is demonstrated by our extensive expertise in similar deals. The loan structure and tenure demonstrate our strong commitment and support to projects that are important to the development of the UAE.”
Emicool (JV between Union Properties and Dubai Investments is a district cooling service provider involved in supply of chilled water for residential, commercial and industrial application. Emicool enjoys exclusivity for Dubai Investments Park (DIP) and Dubai Motor City sites and is the sole district cooling provider for these developments.
Emicool ensures continuously exceeding customer expectation through delivering district cooling services by a competent work force at world-class level of reliability, efficiency, safety and environmental, supporting resources sustainability. Emicool contributes to the improvement of the environment and development of UAE..