Tabreed, the globally recognized district cooling company, has successfully raised USD 700 million through its inaugural, five-year green sukuk. This marks the first issuance under its new USD 1.5 billion trust certificate issuance programme. The new sukuk will be listed and traded on the London Stock Exchange’s International Securities Market, demonstrating Tabreed's continued pioneering role in the international sukuk market.

The issuance of this new green sukuk garnered substantial institutional demand from high-quality local, regional, and international investors. This led to the order books exceeding 4.3 times and the final issue being oversubscribed by nearly 2.6 times, indicating a high level of investor confidence in Tabreed’s robust credit fundamentals. The sukuk was competitively priced with a profit rate of 5.279%, achieving the highest tightening by any investment grade regional sukuk issuance this year. This is also the tightest ever credit spread for a five-year instrument by Tabreed or any other UAE corporate sukuk with a similar credit rating.

This high demand was supported by investment-grade credit ratings from Moody’s (Baa3) and Fitch (BBB), consistent with Tabreed’s corporate ratings. Tabreed has been a regular issuer over the past 20 years, with its USD 200 million sukuk issuance in 2006 being the first to be listed on the London Stock Exchange. This paved the way for other issuers to follow and was also the first rated sukuk by a corporate entity in the Middle East.

The proceeds from this latest sukuk will be utilized in alignment with Tabreed’s Green Financing Framework, which was first published in March 2022 and later updated in February 2025. Developed in accordance with the ICMA Green Bond Principles (GBP) 2021 and the Loan Market Association (LMA) Green Loan Principles (GLP) 2023, this framework is governed by a multidisciplinary management committee led by the Group’s Chief Financial Officer, Adel Al Wahedi. As a result, Tabreed is now able to issue green bonds and loans, with the net proceeds to be used for financing and refinancing 'Eligible Green Projects'. These include its core business of constructing, acquiring and operating District Cooling schemes, as well as projects related to Energy and Water Efficiency and Wastewater Management.

Tabreed's green sukuk issuance not only reflects the company's commitment to sustainable finance but also contributes to the growing trend of green finance initiatives in the UAE banking sector. By aligning its financing activities with its Green Financing Framework, Tabreed is leading the way in promoting sustainable projects and contributing to the global fight against climate change.