Abu Dhabi-based Tabreed, a prominent district cooling company, has successfully raised $700 million through its inaugural five-year green sukuk. This issuance marks the first under the company’s new $1.5 billion trust certificate issuance program. The sukuk will be listed and traded on the London Stock Exchange’s International Securities Market.

The issuance saw strong institutional demand, attracting high-quality local, regional, and international investors. As a result, the order books exceeded 4.3 times, with the final issue being oversubscribed by nearly 2.6 times, indicating significant investor confidence in Tabreed’s robust credit fundamentals.

Tabreed’s CEO, Khalid Al Marzooqi, emphasized that the company’s reputation is built on sustainability and operational excellence, making this first green sukuk perfectly aligned with their existing business while also focusing on new developments.

The sukuk has a competitive profit rate of 5.279 percent, achieving the highest tightening by any investment-grade regional sukuk issuance this year. It also recorded the tightest credit spread for a five-year instrument by Tabreed or any other UAE corporate sukuk with a similar credit rating.

Funds raised from this sukuk will be utilized in accordance with Tabreed’s Green Financing Framework, initially published in March 2022 and updated in February 2025. This framework allows Tabreed to issue green bonds and loans, with proceeds allocated for financing and refinancing “Eligible Green Projects,” including the construction, acquisition, and operation of District Cooling schemes, as well as projects related to energy and water efficiency and wastewater management.

The framework was supported by a Second Party Opinion from Sustainalytics, a leading global ESG ratings agency. This collaboration demonstrates the sustainable nature of Tabreed’s operations, which utilize approximately 50 percent less electricity compared to conventional cooling methods.

Al Marzooqi remarked that Tabreed is proud to contribute to the UAE’s ambitious roadmap for net-zero emissions while enabling societal progress through sustainable district cooling solutions.

With this issuance, Tabreed continues its pioneering role in the international sukuk market, having been a regular issuer for the past 20 years. In 2006, the company’s $200 million sukuk was the first to be listed on the London Stock Exchange, setting a precedent for future issuers.

Citi and Standard Chartered Bank acted as Joint Global Coordinators, while Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered Bank served as Joint Lead Managers and Joint Bookrunners. Abu Dhabi Commercial Bank was also a Co-Manager for this sukuk issuance.