June 23rd, 2011
Emirates Central Cooling Systems Corporation (Empower), the leading district cooling provider in the Middle East, announced that it will settle the final installment of the AED 200 Million loan from HSBC Bank on July 1.
Ahmad Bin Shafar, CEO of Empower, said that the company used the loan to expand its operations in the UAE and build its infrastructure and network, to cater to the rapidly increasing demand for district cooling, especially in Dubai.
This loan from HSBC Bank was used to build Empower’s plant and network in Jumeirah Beach Residence project which is regarded as one of the prestigious projects in Dubai.. The loan tenor was for 7 years commencing from the year 2004 with repayments in five annual installments commencing from the year 2007 onwards. The company has settled all previous installments in accordance with the terms and conditions of the loan agreement and will settle the fifth and final installment on July 1.
Bin Shafar added: “We pursue a prudent strategy to finance our projects through an optimal mix of debt and equity to maximize our shareholder returns.” He added: “We have settled all our loans as per the agreed timelines which demonstrates the robustness and sustainability of Empower’s business model and effectiveness of its financial strategy.”
Bin Shafar said: “Empower has adopted a business model that works on the strategy of investing in plants and network infrastructure driven by actual demand in a particular project. This has resulted in sustainable growth of the company and avoided unproductive investments and financial losses witnessed in other District Cooling companies in the region.”
Resultantly, Empower has succeeded in positioning itself as one of the most prominent district cooling companies in the world and No. 1 in the Middle East.
Empower is providing high quality district cooling services which significantly reduces energy consumption as compared to traditional air conditioning systems.
District cooling services achieve economies of scale by using centralised plants instead of individual cooling units in each building. The centralised system results in reduced capital and operating costs, thus lowering air-conditioning set-up and energy costs per building.