Tabreed will issue convertible bonds worth Dh1.13 billion to Mubadala, a strategic company owned by the Abu Dhabi Government, as part of a recapitalisation plan agreed last year.
Mubadala offered the district cooling company a loan facility of Dh1.4bn maturing at the end of this month and a convertible bond worth Dh1.7bn.
The combined value amounts to Dh3.1bn.
Tabreed has drawn Dh1.13bn from the loan facility, it said in a statement yesterday posted on the Dubai bourse.
The loan facility will be closed and converted to convertible bonds, with the same terms as the previous issue, the statement added.
Like other district cooling operators, Tabreed was buffeted by the property downturn that started in late 2008. It spent billions of dirhams building air conditioning plants, but revenues slowed as projects were delayed and scaled back.
Empower, a district cooling company owned by the Dubai Electricity and Water Authority, also underwent a debt restructuring in the wake of the crisis.
Mubadala has played a significant part in helping to revive the fortunes of Tabreed after it became mired in debt during the global downturn.
Tabreed shares gained 0.8 per cent at Dh1.21 each yesterday. They have risen 140 per cent since January, compared with about 20 per cent for the Dubai Financial Market General Index as a whole. Tabreed has posted a third-quarter profit of Dh73 million, a 35 per cent increase from last year's Dh54.1m.
"The new board and the entry of Mubadala has led to a full restructuring of the company, the results of which have been positive and reflected on the financial statements of the company," said Wadah Al Taha, the chief investment officer at Al Zarooni Group, an investment company in Dubai.
halsayegh@thenational.ae
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
MATCH INFO
Manchester United v Everton
Where: Old Trafford, Manchester
When: Sunday, kick-off 7pm (UAE)
How to watch: Live on BeIN Sports 11HD
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
