Palm District Cooling (PDC), a leading Dubai-based integrated provider of district cooling services, has raised a Dh519 million ($141.3 million) bridge financing facility. 

Yousuf Kazim, chief executive officer, Palm Utilities, said: “This financing commitment comes at a time when the region is experiencing severe liquidity constraints. It clearly validates the strength of our business model and the key role that PDC plays in helping to develop infrastructure in the UAE.”

PDC is a subsidiary of Palm Utilities, owned by Istithmar, a Dubai World group entity.

The financing will be utilised for capital expenditure requirements of the company and is part of a wider financing strategy that will include accessing the syndicated loan and capital markets in the future, said a statement.

“Raising finance in the present environment was challenging, but with the support of all the parties involved, we were able to get it done,” said Murtaza Chevel, chief financial officer, Palm Utilities.

PDC specialises in Build-Own-Operate model of development offering design, construction, operation and maintenance services in the district cooling space and has pioneered the concept of using treated sewage effluent for its district cooling operations.

The company’s current capacity 450,000 TR is expected to increase to 1 million TR over the next few years. Some of the key clients it currently services include developments such as the Palm Jumeirah Island, Discovery Gardens, Jumeirah Lake Towers and Ibn Battuta Mall. – TradeArabia News Service