District cooling company says bond was oversubscribed by five times
National Central Cooling Company (Tabreed) has raised $500 million with a seven-year 2.5 percent coupon bond issuance.
In a statement to Dubai Financial Market (DFM) the district cooling company said it had had orders of 140 local and international investors, and that the bond was five times oversubscribed for its initial size of $400 million.
“This significant demand allowed Tabreed to tighten pricing significantly to achieve a final coupon of 2.5 percent and to increase the size of the final bond to $500 million,” said the statement.
The company said 90 percent of investors were international - 49 percent from Europe, 21 percent from Asia and 20 percent from offshore US funds.
The bond will be listed on the London Stock Exchange alongside Tabreed’s existing 2025 sukuk.