National Central Cooling Co. (TABREED) will convert 1.13 billion dirhams ($308 million) of loans from Mubadala Development Co. into mandatory convertible bonds as part of a financing accord with the Abu Dhabi investment fund.
Tabreed, as National Central Cooling is known, will tomorrow issue the bonds that will have “substantially the same terms” as the securities sold in 2011, the company said in a statement to the Dubai stock exchange today.
Mubadala in 2011 agreed to provide Tabreed long-term capital of 1.7 billion dirhams in mandatory convertible notes due 2019 and a loan facility of as much as 1.4 billion dirhams maturing at the end of this month. Mubadala owns about 15 percent of Tabreed, the Abu Dhabi-based company that builds and operates cooling and air-conditioning systems, according to data compiled by Bloomberg.
Tabreed, which appointed Jasim Thabet as chief executive officer in August, posted a 35 percent increase in third-quarter profit. The company operates 59 plants in the United Arab Emirates and six facilities in Bahrain, Oman, Qatar and Saudi Arabia, according to information provided by Tabreed at the end of third quarter.
The shares dropped 0.8 percent at 11:04 a.m. in Dubai trading. The stock has surged 140 percent this year compared with a 19 percent gain for the benchmark DFM General Index. (DFMGI)
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