In a separate regulatory filing to the Dubai Financial Market, where Tabreed shares are traded, the district cooling provider said it has also entered into an acquisition deal of additional shares in Saudi Tabreed from Al Mutlaq Group for Industrial Investments for the value of SR55 million ($14.62 million).  

After this deal, Tabreed's existing shareholding in Saudi Tabreed will reach 21.8 percent, the filing added.  

The company didn’t disclose the value of the stake acquired by PIF; however, a Bloomberg report said it is estimated to be worth $250 million.  

The PIF has been increasing its investment in sustainable projects, and with this acquisition, the wealth fund is set to have a significant holding in the district cooling company.   

Founded in 1998, UAE-based Tabreed is a district cooling developer that provides energy-efficient, cost-effective and environmentally friendly cooling solutions in the region.  

Its subsidiary Saudi Tabreed is into providing sustainable district cooling schemes for some of the most important urban mega-development projects in the Kingdom and across the Gulf region.   

A closed joint stock company with offices in Riyadh and Khobar, Saudi Tabreed’s shareholders include Vision International Investment Co., Tabreed UAE, IDB Infrastructure Fund (II) “Mena Utilities” and Al Mutlaq Group.  

The company, which currently runs a contracted capacity of 751,000 tons of refrigeration across the Kingdom, develops, invests and maintains district cooling schemes on a build-operate-own or transfer basis.  

Saudi Tabreed is the exclusive cooling services provider for the Red Sea Project, a flagship mega-project under the Kingdom's Vision 2030 plan to diversify its economy. The company also has long-term contracts with Saudi Aramco to provide district cooling services.