District cooling firm Tabreed has agreed to issue 1.13 billion dirhams ($308 million) in convertible bonds to Abu Dhabi fund Mubadala on December 31, the firm said on Sunday, as part of a recapitalisation plan agreed last year.
Tabreed secured 3.1 billion dirhams of financing from Mubadala Development Co, wholly owned by the Abu Dhabi government, in March 2011; the package consisted of a 1.7 billion dirham convertible bond issue and a loan facility of up to 1.4 billion dirhams.
Under terms of the loan, which matures this month, the amount drawn by Tabreed would be repaid with an issue of new convertible bonds. Sunday's statement said Tabreed had drawn 1.13 billion dirhams from the facility, and would issue that amount of convertible bonds to Mubadala under the same terms as its previous convertible issue.
The conversion price of the original bonds was 1.1259 dirhams a share; Mubadala can convert them into shares in 2019.
Formally known as National Cooling Co, Tabreed provides cooling systems to residential and commercial properties in the Gulf. It also cools Dubai's metro network.
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