The Sponsor, Tabreed is amongst the world’s largest district cooling utilities, providing cooling service to government and private developers in UAE and Gulf Cooperation Council. Rated ‘Baa3’ and ‘BBB’ by Moody’s and Fitch Ratings, Tabreed is backed by well-established entities with ENGIE SA and Mubadala Investment Company holding 40% and 42% equity stake in the company respectively. It is listed on the Dubai Stock Exchange with a market cap of US$2.19 billion as on 15th May 2021.

Tabreed currently delivers over 1.4 million RT of DC services across 86 projects. In 2020, their operations resulted in energy savings of 2.26 billion kWh and 1.35 million tons carbon dioxide emissions savings, when compared to conventional cooling systems.

The Company will be capitalized with US$100 million of equity to be funded in the proportion of Tabreed’s and IFC’s shareholding. IFC will invest US$25 million in the form of newly issued common shares over the next 3-4 years.

The Company targets building 90,000 RT of projects in India and other countries in Asia with an investment of upto US$300 million (US$100 million equity and balance in debt).

The initial focus market is India, but the Company would subject to approvals target other Asian geographies as well, at a later date.

This is a category B project according to IFC’s Policy on Environmental and Social Sustainability. The project facilities will be constructed or operated either within premises of existing facilities or larger developments or on relatively small parcels of land (less than one acre for a DC plant capacity of 15000 RT) or within the RoW of existing roads. The key risks and impacts will therefore be limited, few in number, site specific, and largely reversible. Any adverse impact can be minimized, avoided or mitigated by adhering to generally recognized international industry performance standards, guidelines, or design project criteria. Accordingly, the key E&S issues related to the project and reviewed at appraisal are: capacity of DCC to build the facilities in accordance with IFC PSs; emissions to air, water and land during construction and operation; labor working and living conditions; community health, safety and security; life and fire safety; management of water, wastewater, solid  and hazardous wastes, and refrigerants; emergency preparedness and response; and stakeholder engagement.

DCC will be required to implement an ESMS, which has been defined to include the company’s Human Resource (HR) Policies and Procedures, and in accordance with IFC PSs, to undertake its future projects and manage its environmental and social performance. IFC will require that DCC, within a timeframe to be agreed with IFC, adopt and implement the ESMS and framework outlined in the sections below. Going forward, IFC will review third party ESMS audits and third party ESDD reports for company’s future projects and if required, provide recommendations to strengthen the relevant processes.