National Central Cooling Company PJSC (DFM: Tabreed) has announced the publication of a Green Financing Framework, which will help the company meet its commitments and finance new projects to support its business strategy and vision. The framework enables Tabreed to issue green bonds and loans, with the resulting net proceeds to be used for financing โEligible Green Projectsโ which include its core business of constructing, acquiring and operating District Cooling schemes, as well as projects related to Energy and Water Efficiency and Wastewater Management.
The framework is accompanied by a Second Party Opinion from Sustainalytics, a leading, global ESG ratings agency. This Framework and Second Party Opinion demonstrate the sustainable nature of Tabreedโs District Cooling operations, which utilise 50% less power than conventional cooling, while providing an essential service in the GCC and wider region.
TabreedโsGreen Financing Framework has been developed in accordance with the ICMA Green Bond Principles (GBP) 2021 and the Loan Market Association (LMA) Green Loan Principles (GLP) 2021, and will be governed by a multidisciplinary management committee led by the Groupโs Chief Financial Officer.
The framework will also benefit Tabreedโs investors, shareholders, staff and customers, enabling the company to attract green debt and equity funds to invest in its business. Additionally, the second party opinion received from Sustainalytics provides strong support forTabreedโs ESG credentials, the report stating they were โconfident that Tabreed is well positioned to issue Green Financing Instruments and that the Tabreed Green Financing Framework is robust, transparent and in alignment with the four core components of the Green Bond Principles 2021 and Green Loan Principles 2021โ.
