Tabreed launches the Green Finance Framework to finance projects that contribute to carbon neutrality

The National Central Cooling Company "Tabreed" announced the launch of the Green Finance Framework, which will help the company fulfill its commitments and finance new projects to support the company's strategy and vision.

The new framework allows Tabreed to issue green bonds and loans, with the net proceeds going to fund “qualified green projects” whose core business includes building, owning and operating district cooling systems, as well as projects related to energy and water efficiency and wastewater management.

The launch of the framework is accompanied by an independent specialist assessment from Socialites, a global leader in the assessment of environmental, social and corporate governance practices.

This framework and independent specialized evaluation reflect the sustainable nature of district cooling operations provided by Tabreed, which uses 50% less energy than conventional cooling systems, and provides its distinguished services to the countries of the Cooperation Council for the Arab States of the Gulf and other countries.

Tabreed has developed the Green Finance Framework in cooperation with Standard Chartered, in accordance with the Green Bond Principles 2021 issued by the International Capital Markets Association, and the Green Loan Principles 2021 issued by the Loan Market Association, and will be managed by a multidisciplinary management committee under the leadership of the Group Chief Financial Officer.

Adel Salem Al Wahidi, Tabreed's Chief Financial Officer, explained that this new framework will support Tabreed's growth and vision, which is driven by sustainability goals. He said, "We are convinced that this will bring the company's operations into line with the sustainable development goals of the United Nations and the United Arab Emirates. Today, around the world, we are witnessing governments and public institutions adopting ambitious goals in the field of sustainability, and we at Tabreed support With the strength of the unremitting efforts made by the UAE in this regard, investors and shareholders trust us to lead the way towards sustainability in the district cooling and energy sector, and this green financial framework will bring great benefits to developers and societies alike, as well as provide cooling the additional capabilities and capabilities that it needs. To achieve the purposeful and constructive growth it seeks.

The framework also offers a lot of benefits to Tabreed's investors, shareholders, team and customers, allowing the company to attract debt instruments and equity funds to invest in its business. In addition, the independent professional evaluation that the company obtained from the Sustainabletex Foundation supports the potential of Tabreed's Environmental, Social and Corporate Governance practices.

The evaluation report stated that the evaluation body “confident that Tabreed occupies a distinguished position that qualifies it to issue green financing instruments, and that the green financing framework it launched is robust, transparent, and consistent with the four basic components of the Green Bond Principles 2021 and the Green Loan Principles 2021.”

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