DUBAI, 20th December, 2021 (WAM) — The National Central Cooling Company (Tabreed) has entered into a strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to invest approximately $400 million in India on next five years.
Under the partnership agreement, Tabreed India, currently a wholly-owned subsidiary of Tabreed, will be transferred to a new Singapore-based holding company, in which Tabreed will hold a 75% stake and IFC 25%, according to a filing. tabreed. on the Dubai Financial Market where its shares are traded.
The holding company will be created with initial equity commitments from partners of $100 million with a mandate to invest in projects of up to approximately $400 million over the next five years.
The investment will target a portfolio of approximately 100,000 tonnes of refrigeration (RT) serving industrial, commercial and retail developments across India.
IFC and Tabreed have agreed to investment eligibility criteria that include robust environmental, social, and corporate governance (ESG) requirements for projects in these geographies. Public environmental and sustainability (E&S) disclosures will be made by IFC prior to investing in each project.
Makhtar Diop, Managing Director of IFC, said, “As temperatures rise, access to cooling is a major development challenge, especially in emerging economies located in the tropical climate zone. This district cooling project is at the heart of what IFC is. “
He added, “Working with Tabreed, we will bring sustainable, innovative and much-needed cooling solutions to India and other parts of Asia.
Khalid Abdulla Al Marzooqi, CEO of Tabreed, said, “This is a positive and timely development for Tabreed. IFC has been established in this region for many decades, unlocking investment opportunities, enhancing client performance and impact, and improving environmental, social and governance (ESG) standards. It makes perfect sense for us to join forces as we can draw on each other’s unparalleled expertise.”
