National Central Cooling Company PJSC (DFM: Tabreed) has finalized a significant strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group and the global development institution focused on the private sector in emerging markets.
The partnership will include ownership of Tabreed India, currently, a wholly-owned subsidiary of Tabreed, being transferred to a new holding company established in Singapore to be jointly owned by Tabreed (75%) and IFC (25%). The holding company is said to be established with initial equity commitments from the partners of US$100 million with a mandate to invest in projects of up to approximately $400 million over the next five years, targeting a portfolio of approximately 100,000 refrigeration tonnes (RT) servicing industrial, commercial and retail developments across India.
IFC and Tabreed have agreed with investment eligibility criteria which include robust environmental, social, and corporate governance (ESG) requirements for projects in these geographies. Public environment and sustainability (E&S) disclosures will be made by IFC before investing in each project.
“As temperatures are rising, 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 all about,” said Makhtar Diop, IFC’s Managing Director. “By 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, strengthening clients’ performance and impact, as well as improving environmental, social, and governance (ESG) standards. It makes perfect sense for us to join forces as we can lean on each other’s unrivaled expertise.
India is strategically very important for us, with demand for energy growing faster there than anywhere else in the world right now. District cooling uses, on average, half the power consumed by conventional cooling methods, meaning it’s an essential part of many countries’ climate goals due to the enormous savings in CO2 emissions achieved through energy efficiency. For countries such as India, reliable cooling means industrial, agricultural and societal progress, and we eagerly look forward to making a meaningful contribution to its prosperity while ensuring the sustainability we know is vital to all our futures.”