Empower clinches $600mn syndicated loan

District cooling firm secures funding one week after $500mn merger

Empower CEO Ahmed Bin Shafar (centre) with representatives from Mashreq, Citi Bank, Standard Chartered and Emirates NBD
Empower CEO Ahmed Bin Shafar (centre) with representatives from Mashreq, Citi Bank, Standard Chartered and Emirates NBD

District cooling company Empower has raised $600mn by way of a syndicated loan.

The company said that the loan has been provided over a six-year period by four lead arrangers - Citibank, Standard Chartered, Emirates NBD and Mashreq. It will be paid off in half-yearly instalments, with the final one due by December 2019.

The loan will help to fund its purchase of competitors Palm Utilities and Palm District Cooling, which it bought last week under a $500mn deal from Istithmar World, which is part of Dubai World. It will also finance future growth plans.

Empower is jointly owned by Dubai Electricity and Water Authority and TECOM, which is part of Dubai Holding.

Empower CEO Ahmad Bin Shafar said: "Empower continues to pursue a strategy of financing its projects through an optimal mix of debt and equity in order to better maximise shareholder returns.

"This loan in particular will ensure that adequate and cost-effective funding is readily available to sustain our future growth, while also driving the implementation of our landmark projects,” said Ahmad Bin Shafar, CEO, Empower.

He added that the funding "reflects the confidence of banks and financial institutions in our prudent and cautious strategy".

Empower has already taken on responsibility for Palm Utilities' contracts, assets and liabilities.

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