Palm Utilities, a Dubai World Company, has announced the closure of a Dh1.14 billion ($310 million) conventional/Islamic club financing facility for its district cooling business.

The financing facility, comprising two tranches - conventional and Islamic - has a seven-year tenor and will be used to refinance an existing facility.

The new financing facility has been funded and closed, with Abu Dhabi Commercial Bank and Emirates NBD being the lead arrangers for the conventional tranche, and Emirates Islamic Bank being the lead arranger for the Islamic tranche of the financing facility.

“This is a resounding vote of confidence by the financial community in Dubai’s economy, in general, and particularly in Palm Utilities’ performance to date and its future plans,” said Marwan Al Naqi, chief executive officer of Palm Utilities.

“Despite challenging regional market conditions, the facility received good response from the financial institutions given the strong and stable cash flows in the District Cooling business and improved confidence in Dubai’s economic development in general and the real estate sector in particular,” he added. – TradeArabia News Service