Mubadala Development increases its stake in Tabreed as the Abu Dhabi district cooling company completes its debt restructuring plan.
Mubadala increases share in cooling company Tabreed
Mubadala Development's shareholding in Tabreed increased today in exchange for previous financial support for the Abu Dhabi district cooling company's debt restructuring plan.
Tabreed yesterday completed a tender offer of shares as repayment for a Dh1.7 billion (US$0.5bn) Islamic bond due this month. Under the agreement, Tabreed completed an issuance of 415.68 million shares to repay the sukuk, it said today.
"The completed recapitalisation program provides the company with a stable capital structure and long-term funding for future growth," Tabreed said in a statement.
Mubadala played a significant part in helping to revive the fortunes of Tabreed after it become embroiled in debt during the global downturn. In March the firm secured an extra Dh3.1bn funding from Mubadala to help it restructure its debts.
After the conversion of the Islamic trust certificates into shares, Mubadala now holds a 26.1 per cent stake in Tabreed. The share includes a 14.8 per cent stake held directly by the Abu Dhabi Government strategic investment vehicle and a further 11.29 per cent stake through General Investments, a subsidiary owned by Mubadala.