Palm District Cooling raises AED 519 million financing for future expansion
March 22, 2009
Palm District Cooling (PDC), a leading Dubai-based integrated provider of district cooling services, and a subsidiary of Palm Utilities, owned by Istithmar, a Dubai World group entity, has announced that it recently raised an AED 519 million bridge financing facility. This is in line with its growth strategy within the UAE.
Yousuf Kazim, Chief Executive Officer, Palm Utilities, said, “This financing commitment comes at a time when the region is experiencing severe liquidity constraints. It clearly validates the strength of our business model and the key role that PDC plays in helping to develop infrastructure in the UAE.”
The financing will be utilised for capital expenditure requirements of the company and is part of a wider financing strategy that will include accessing the syndicated loan and capital markets in the future.
“Raising finance in the present environment was challenging, but with the support of all the parties involved, we were able to get it done,” said Murtaza Chevel, Chief Financial Officer, Palm Utilities.
PDC specialises in Build-Own-Operate model of development offering design, construction, operation & maintenance services in the district cooling space and has pioneered the concept of using treated sewage effluent for its district cooling operations. The company’s current capacity 450,000 TR is expected to increase to 1 million TR over the next few years. Some of the key clients it currently services include developments such as the Palm Jumeirah Island, Discovery Gardens, Jumeirah Lake Towers and Ibn Battuta Mall.