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Empower bags US$600 million loan for strategic growth

Dubai-headquartered DC provider says it continues to pursue a strategy of financing its projects through an optimal mix of debt and equity.

| | Jan 26, 2014 | 1:08 pm
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Dubai-headquartered DC provider says it continues to pursue a strategy of financing its projects through an optimal mix of debt and equity.

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Dubai, UAE, January 26, 2014: Empower, the district cooling services provider, has announced securing US$600 million loan recently through a syndicated term loan facility underwritten through four mandated lead arrangers – Citibank, Standard Chartered, Emirate NBD and Mashreq – with a six-year term.  Repayments are scheduled to be made in half-yearly installments with the final installment due to be made in December 2019, the announcement informed.

In this context, Ahmad Bin Shafar, CEO, Empower said: “Empower continues to pursue a strategy of financing its projects through an optimal mix of debt and equity in order to better maximise 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.”

Observing that the funding reflected the confidence of banks and financial institutions in its prudent strategy and sustainable business model, Bin Shafar revealed that Empower had previously secured syndicated as well as bilateral loan facilities and had always met its commitments and repayment obligations as per agreed terms.

“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,” Bin Shafar said. “This has resulted in sustainable growth of the company and avoided financial losses witnessed in other district cooling companies in the region.”

After its recent acquisition, Empower now reportedly operates all projects, functions, operations, assets and liabilities of Palm Utilities, including Palm District Cooling, which was previously owned and operated by Istithmar World. Against this backdrop, the company highlighted that the deal meant that Empower now has 70% market share in the UAE with a capacity of about one million Refrigeration Tonnes (TR), making it the largest district cooling provider in the world in terms of capacity.


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