Linklaters LLP has advised the National Central Cooling Company (Tabreed) P.J.S.C on Tabreed 08 Financing Corporation’s AED 1.7 billion Sukuk issuance, in the form of Sharia'a compliant trust certificates mandatorily exchangeable into ordinary shares of Tabreed, which mature in 2011. The certificates are listed on the London Stock Exchange.
This is the first mandatorily convertible Sukuk to be issued and is a further step on from the Nakheel Development, Tamweel Funding and DanaGas convertible Sukuk transactions on which Linklaters has acted in recent months.
The proceeds of the issue will be used by the Issuer to purchase assets and also to fund the construction of assets by Tabreed.
Tabreed is the leading supplier of district cooling services in the United Arab Emirates (the “UAE”). It designs, engineers, finances, constructs and operates district cooling facilities to supply chilled water for air conditioning to businesses, residential developments and public buildings. Tabreed is listed on the Dubai Financial Market and it currently operates 31 district cooling plants in the UAE. District cooling (akin to district heating in more Northerly climes), while more capital intensive, provides efficiency gains in supplying air conditioning as against individual building units.
Luma Saqqaf, partner and head of Linklaters' Islamic Finance group, commented:
"We are very pleased to be part of Tabreed’s Sukuk issuance. This first mandatorily convertible Sukuk is another ground-breaking project in which Linklaters has been involved. It is the first ever mandatory convertible to be issued in a Sharia’a compliant form.
“This transaction demonstrates Linklaters' Islamic capital markets strength and the seamless interaction of our international network."
The Linklaters team was led by Luma Saqqaf in Dubai, and included Andrew Roberts (Partner) and Nicholas Hayday (Managing Associate) in London and Barry Cosgrave (Associate) in Dubai.
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