January 27th, 2014
Empower the leading district cooling services provider in the Middle East, has announced details of the US$600 million loan secured by the company recently.
The syndicated term loan facility has been underwritten through four mandated lead arrangers, including Citibank, Standard Chartered, Emirate NBD and Mashreq with a 6 year term. Repayments are scheduled to be made in half-yearly installments with the final installment due to be made in December 2019.
“Empower continues to pursue a strategy of financing its projects through an optimal mix of debt and equity in order to better maximize shareholder returns. This loan in particular will ensure that adequate and cost-effective funding is readily available to sustain our future growth and while also driving the implementation of our landmark projects,” said Ahmad Bin Shafar, CEO, Empower.
He added: “This funding reflects the confidence of banks and financial institutions in our prudent and cautious strategy and sustainable business model.” Empower had previously secured syndicated as well as bilateral loan facilities and has always met its commitments and repayment obligations as per agreed terms.
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 financial losses witnessed in other district cooling companies in the region.”
Empower now operates all projects, functions, operations, assets and liabilities of Palm Utilities including Palm District Cooling which was previously owned and operated by Istithmar World.
Palm Utilities currently provides its services to various landmark developments including Palm Jumeirah, Jumeirah Lakes Towers, Jumeirah Village, Discovery Gardens, Dubai Multi Commodities Centre and Ibn Battuta shopping mall.
The deal means Empower now has 70 per cent market share in the UAE with a capacity of about one million Refrigeration Tonnes (RT), making it the largest district cooling provider in the world in terms of capacity.