GIB Capital Advises Saudi Tabreed District Cooling Company (“Saudi Tabreed”) on the Investment by IDB Infrastructure Fund II in Saudi Tabreed

GIB Capital, the investment banking subsidiary of Gulf International Bank (“GIB”), has successfully advised Saudi Tabreed District Cooling Company (“Saudi Tabreed” or the “Company”) on the private placement of 22.8% shareholding in the Company to IDB Infrastructure Fund II (the “Fund”). The transaction was completed in April 2018.

Key investors in the Fund include the Islamic Development Bank, KSA (“IDB”), the Public Investment Fund of Saudi Arabia (“PIF”), the Public Pension Agency of Saudi Arabia (“PPA”), and the governments of Bahrain and Brunei. The Fund, which has sizable investments in infrastructure projects in the GCC countries as well as in several South Asian countries, undertook the investment in Saudi Tabreed in line with its overall investment strategy. Asma Capital Partners B.S.C. (c), the Fund manager, executed the due diligence and the investment process on the Fund’s behalf. 

Based in Al-Khobar, Saudi Tabreed is the leading district cooling scheme developer in the Kingdom of Saudi Arabia. Its shareholders comprise some of the most respected business names in the region, including ACWA Holding, National Central Cooling Company (Tabreed UAE), Almutlaq Group and LAMA Holding. 

Saudi Tabreed develops and invests in district cooling schemes, providing flexible, long-term contracts for the supply of cooling to a range of customers. At present, the Company has invested in and developed district cooling plants for King Khalid International Airport, Jabal Omar Development Company and Saudi Aramco.  The Company also has an operations and maintenance contract for the district cooling plant at King Abdullah Financial District. The Company’s total contracted capacity at this time is 222,000 tons of refrigeration, which is expected to grow significantly over the coming years.

Commenting on the transaction, Mr. Osamah M. Shaker, Chief Executive Officer of GIB Capital, stated: “We are pleased to have assisted Saudi Tabreed, the leader in the district cooling sector in Saudi Arabia, on the placement of its equity to IDB Infrastructure Fund II. With prestigious sovereign institutions in Saudi Arabia as its cornerstone investors, the Fund’s interest in Saudi Tabreed is a testament to the strength of the Company’s future plans. GIB Capital continues to remain committed to serving the investment advisory needs of Saudi Arabia and prides itself on providing the highest quality of service to its clients.”

Over the last several years, GIB Capital has successfully completed a number of private placement transactions totalling in excess of SAR 6.5 billion (US$ 1.75 billion) for various institutions and has introduced offerings to the Saudi capital markets of more than SAR 19 billion (US$ 5 billion).

GIB Capital was established in 2008 as a fully-owned subsidiary of GIB to carry out investment activities within Saudi Arabia and is duly authorised by the CMA. GIB Capital is a leading institution in Saudi Arabia providing client-focused, innovative financial products and services including asset management, IPOs, private equity placement, mergers & acquisitions, Sukuk/bond issues and debt advisory.