**UAE**: Tabreed has raised $700 million via its first five-year green sukuk, significantly oversubscribed at 2.6 times. The funds will support environmentally sustainable projects, reflecting the company’s commitment to reducing carbon emissions and enhancing its global financial footprint through its $1.5 billion certificate program.
Tabreed, a prominent district cooling provider based in the UAE, has successfully raised $700 million through its inaugural five-year green sukuk. This issuance represents a critical step under the company’s broader $1.5 billion trust certificate program and will be listed on the international securities market of the London Stock Exchange, bolstering Tabreed’s global financial footprint.
The sukuk witnessed significant demand from local, regional, and international institutional investors, resulting in an oversubscription rate of nearly 2.6 times. Investor interest was predominantly fuelled by Tabreed’s investment-grade credit ratings, reaffirmed by prominent rating agencies Moody’s (Baa3) and Fitch (BBB). This strong backing illustrates the company’s financial stability and its potential for long-term growth.
Tabreed priced the sukuk competitively at a yield of 5.28%, a move that further reflects the confidence investors have in the company’s business model. The funds generated from this issuance will be allocated in accordance with Tabreed’s Green Financing Framework, ensuring that the proceeds are channelled towards environmentally sustainable projects.
The issuance forms part of Tabreed’s overarching commitment to sustainability, particularly in energy-efficient district cooling—an essential aspect of reducing carbon emissions. As the market increasingly leans towards eco-friendly solutions, Tabreed positions itself as a leader in innovation within this sector.
Khalid Al Marzooqi, Tabreed’s CEO, stated, “The UAE has a clear roadmap for net-zero, and we are proud to play a crucial role in preventing large-scale carbon emissions while driving sustainable progress.” He emphasised that the green sukuk aligns seamlessly with both existing operations and future expansion plans for the company.
Currently, Tabreed operates 92 district cooling plants in six different countries. Notably, in 2024, the company became the first district energy company globally to achieve the Verified Carbon Standard certification, enabling it to trade carbon credits in the voluntary market. This landmark achievement further solidifies Tabreed’s role as a leader in sustainability.
With the successful issuance of this green sukuk, Tabreed aims to enhance its sustainable financing initiatives. By embedding environmental responsibility into its business model, the company not only positions itself for long-term growth but also contributes actively to a more sustainable future.
Source: Noah Wire Services
- https://www.zawya.com/en/economy/islamic-economy/tabreed-issues-700mln-inaugural-green-sukuk-mp23i806 – This article confirms Tabreed’s successful issuance of a $700 million inaugural green sukuk, which is part of its $1.5 billion trust certificate program and will be listed on the London Stock Exchange. It highlights the strong demand from investors and the competitive pricing of the sukuk.
- https://www.tabreed.ae/news/tabreed-successfully-issues-usd-700-million-inaugural-green-sukuk – This news release from Tabreed details the issuance of the green sukuk, its listing on the London Stock Exchange, and the strong investor demand. It also mentions the use of proceeds in line with Tabreed’s Green Financing Framework.
- https://www.islamicfinancenews.com/tabreeds-sukuk-marking-a-milestone-with-inaugural-green-issuance.html – This article provides additional context on Tabreed’s inaugural green sukuk, emphasizing its significance as a milestone in sustainable financing. It highlights the company’s commitment to environmentally friendly projects.
- https://www.londonstockexchange.com/markets-and-trading/markets/international-securities-market/ism.htm – This page from the London Stock Exchange explains the International Securities Market, where Tabreed’s green sukuk will be listed and traded, enhancing its global financial presence.
- https://www.moodys.com/credit-ratings/Tabreed-credit-rating-806056444 – Moody’s provides credit ratings for Tabreed, which are crucial for investor confidence. The Baa3 rating supports the strong demand for the sukuk.
- https://www.fitchratings.com/entity/tabreed-403313 – Fitch Ratings also provides a BBB rating for Tabreed, further solidifying its financial stability and attracting investors to the green sukuk.
- https://thefinanceworld.com/tabreed-raises-700-million-in-green-sukuk-debut/ – Please view link – unable to able to access data
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative does not appear to be recycled from older content, and it references recent achievements such as Tabreed becoming the first district energy company to achieve the Verified Carbon Standard certification in 2024. However, without specific dates or recent updates, the freshness could be slightly improved.
Quotes check
Score:
6
Notes:
The quote from Khalid Al Marzooqi is not verified against earlier sources, but it seems original to this context. Without further online references, it’s challenging to confirm if this is the first use of the quote.
Source reliability
Score:
5
Notes:
The narrative originates from a less well-known publication, which may impact its reliability compared to major news outlets like the Financial Times or BBC.
Plausability check
Score:
9
Notes:
The claims about Tabreed’s financial activities and sustainability initiatives seem plausible given the context of green sukuk issuances and the company’s focus on sustainability. The involvement of prominent rating agencies adds credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the narrative appears plausible and fresh, the lack of verification for the quote and the source’s lesser-known status introduce some uncertainty. The financial details and sustainability focus align with current trends, but further confirmation from more established sources would enhance credibility.
