SOFAZ, TAEF to co-invest in leading UAE cooling operator

BAKU. Jan 28 (Interfax) - The State Oil Fund of the Republic of Azerbaijan (SOFAZ) and Arab Energy Fund have reached agreement with CVC DIF to co-invest in PAL Cooling Holding, a principal district cooling operator in the UAE.

"TAEF and SOFAZ have agreed to partner with CVC DIF to invest in a co-investment vehicle that invests alongside DIF VII, which recently acquired a 50% stake in PAL Cooling Holding. The investment reflects a shared commitment to advancing energy-efficient infrastructure solutions across the region," SOFAZ said in a statement.

UAE companies CVC DIF and Tabreed agreed in June 2025 on the acquisition of PAL in a 50/50 joint venture with an equity value of approximately AED 3.8 billion or around $1.03 billion

SOFAZ Deputy CEO Rovshan Javadov said SOFAZ's participation in this transaction underscores our strong interest in the UAE and broadly in the Gulf region.

PAL Cooling Holding is the second-largest district cooling provider in the UAE, managing eight long-term concessions with an average remaining duration of 25 years and serving over 45,000 customers.

The Arab Energy Fund is a multilateral impact financial institution focused on the MENA energy and utility sectors, established in 1974 by ten Arab oil-exporting countries. The Fund's mission is to support the energy ecosystem with debt and equity solutions to enable energy security and sustainability and to develop local value chains and services in the MENA region. Environmental and socially linked projects comprise around 20% of its $5.8 billion loan portfolio.

CVC DIF, founded in 2005, is headquartered in Amsterdam and has 19 billion euros of infrastructure assets under management in energy transition, transport, utilities and digitalization.