UAE-based 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 about $400 million in India over the next five years.

 

Under the partnership agreement, Tabreed India, currently a wholly owned subsidiary of Tabreed, will be transferred to a new holding company established in Singapore, in which the Emirati group will hold a 75 per cent stake and IFC will have 25 per cent, stated Tabreed in its filing to the Dubai Financial Market.

 

The holding company will be set up with initial equity commitments from the 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 refrigeration tonnes (RT) servicing industrial, commercial and retail developments across India.

 

IFC and Tabreed have agreed 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 prior to investing in each project.

 

Makhtar Diop, IFC's Managing Director, commented, "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."

 

He added, "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 are able to lean on each other's unrivalled expertise," he added.