IDB infra fund acquires stake in Saudi Tabreed

IDB Infrastructure Fund II, backed by Saudi Arabia's Public Investment Fund (PIF), has acquired a “significant” stake in Saudi Tabreed, an associate of Dubai-based National Central Cooling Company (Tabreed).

The size of the stake was not disclosed.

Saudi Tabreed is Tabreed’s district cooling investment vehicle, held jointly with ACWA Holdings, the Al Mutlaq Group and LAMA Holding, Tabreed said in a statement to Dubai Financial Market on Thursday.

The company provides 79,000 refrigeration tons (RTs) of cooling to its Aramco and Jebel Omar projects and operates a further 130,000 RT through O&M projects across the Kingdom.

Tabreed’s holding in its Saudi associate will decrease from 25 percent to 20 percent following the deal, the statement said.

“Tabreed will receive around AED 70 million in cash from a combination of the sale of its shares to the fund and dividends to be paid by Saudi Tabreed,” it added.

The sponsors of IDB Infrastructure Fund II include the Islamic Development Bank, PIF, Public Pension Agency, and the governments of Bahrain and Brunei Darussalam.