ABU DHABI, UAE, 14 December 2023: Tabreed announced the closure of its inaugural AED 600 million Green Revolving Credit Facility (RCF) in partnership with First Abu Dhabi Bank (FAB) as the Green Coordinator, alongside Abu Dhabi Commercial Bank PJSC (ADCB), and Emirates NBD, following a signing ceremony at the end of its successful participation in COP28.

Making the announcement through a Press release, Tabreed said this financing agreement, spanning five years, aligns seamlessly with its overarching sustainability strategy. The facility, Tabreed added, is designed to introduce highly efficient cooling solutions into the GCC market, meeting the growing demand for sustainable and innovative technologies.

As an active participant in the Cool Coalition, Tabreed further said that its operations and objectives are linked with the United Nations Sustainable Development Goals (SDGs). The District Cooling company also said that the AED 600 million raised through this RCF will be exclusively allocated to finance projects and investments adhering to Tabreed’s Green Finance Framework, established in 2022. These encompass diverse initiatives, including the development, procurement, and operation of District Cooling schemes, and the funds will also support projects dedicated to enhancing energy and water efficiency and those focused on proficient wastewater management, Tabreed added.

Commenting on the conclusion of the Green RCF, Adel Al Wahedi, Chief Financial Officer, Tabreed, said: “This financing agreement is a testament to Tabreed’s unwavering commitment to sustainable practices. By allocating the proceeds exclusively to green projects, we aim to make a significant impact on environmental preservation and drive advancements in cooling technologies. We are proud to partner with FAB, ADCB, Emirates NBD Capital Limited [as Mandated Lead Arranger] and Emirates NBD Bank [as original lender], who share our vision for a more sustainable future.”

Fawaz Abusneineh, Acting Head of Global Corporate Finance, FAB, said: “At FAB, we believe that District Cooling has a major role to play in the Middle East region’s energy-efficient future, as it is more reliable, more energy efficient, and has less negative environmental impact than standard approaches to air-conditioning. This partnership aligns with and amplifies our commitment to lend, invest, and facilitate over USD 135 billion in sustainable and transition financing by 2030. Together, we are ensuring that the UAE’s built environment can transition towards a greener future.”

“We are proud to partner with Tabreed in our collective pursuit of the UAE’s ambition for a net-zero economy. This collaboration is a testament to our commitment to providing sustainable financing solutions and supporting our clients in their transition towards environmental sustainability. As Sustainalytics’ highest-rated diversified bank in the GCC region for ESG, ADCB is proud to bring its experience and capabilities to support its clients’ green ambitions.”

Hitesh Vithal Asarpota, CEO, ENBD Capital Limited and Emirates NBD Capital PSC, said: “We are delighted to support Tabreed’s efforts in further decarbonising the District Cooling sector. This agreement comes in line with our Sustainable Finance Framework, reinforcing our commitment towards sustainability. As a banking group in the region, ENBD is fully aligned with the UAE’s journey to net-zero, and through such agreements, we enable our stakeholders to play an active role in this transition.”

Tabreed also said that this financial commitment reaffirms its commitment to environmental preservation and is at the forefront of pioneering advancements in cooling technologies. The company added that it will remain dedicated to leveraging innovative financing solutions to accelerate the transition to sustainable, efficient, and eco-friendly cooling solutions across the region.