UAE’s Emicool signs refinancing deal with Dubai Islamic Bank

Out-Law News | 13 Aug 2014 | 3:23 pm | 1 min. read

Dubai-based Emirates District Cooling LLC (Emicool), a leading district cooling service provider in the region, has signed a $245 million 12-year facility with the Dubai Islamic Bank (DIB), according to the official Emirates News Agency (WAM).

WAM said the deal with the DIB, which says it is the largest Islamic bank in the United Arab Emirates (UAE), will “largely refinance” Emicool’s existing debt and fund the company’s expansion plans.

DIB chief executive officer Adnan Chilwan said the region and the UAE in particular “is witnessing renewed economic momentum with infrastructure development attracting local and international investors”.

Chilwan said: “In our view, primary infrastructure development projects are the cornerstone of sustainable growth, a key element of the strategy of the country."

Emicool is a joint venture of Dubai Investments PJSC, a leading investments company listed on the Dubai Financial Market, and Union Properties PJSC, a leading property investment developer in the UAE.

Emicool has six operational plants with capacity in the excess of 330,800 refrigeration tonnes including reticulation pipe network and energy transfer stations. The company has said that it is keen to expand its operations throughout the region with emphasis on institutions, malls, commercial complexes and residential communities.

The UAE is the “top target” for investing in capital projects and infrastructure in the Middle East followed by Qatar and Saudi Arabia, according to PwC’s 2014 Middle East Capital Projects and Infrastructure Survey (28-page / 1.25 MB PDF).  In the survey, 75% of respondents said they expected an increase in spending over the next 12 months, “largely driven by mega events” including the Qatar World Cup in 2022, as well as increased spending on social infrastructure.