Dubai-based district cooling firm 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 Tabreed will hold a 75 percent stake and IFC will have 25 percent, according to a filing by Tabreed on the Dubai Financial Market where its shares trade.
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, it added.
In 2019, Tabreed signed a 30-year concession for a contracted cooling capacity of 20,000 RTs with India’s Andhra Pradesh Capital Region Development Authority to build, own, operate and transfer India’s first district cooling system in Amaravati – the new capital of Andhra Pradesh.
(Writing by Brinda Darasha; editing by Seban Scaria)
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