Singapore-based Sembcorp Industries Ltd on Sunday announced that its subsidiary Sembcorp Green Infra Ltd (SGIL) has partnered with US private equity firm Global Infrastructure Partners India Infrastructure Fund II to buy 100% stake in Vector Green Energy Pvt Ltd at an equity price of Rs. A compromise has been made. S$474 million ($345 million).
Peppermint The final deal was reported on 10 November, and Sembcorp and Torrent Power Ltd in the race to buy Vector Green Energy on 13 August. Standard Chartered ran the sales process. The one-time deal will add 583 megawatts (MW) of renewable assets to Sembcorp’s portfolio in India. Sembcorp, listed on the Singapore Exchange through SGIL, has 1.051-gigawatt (GW) wind power capacity in India.
“Completion of the acquisition will bring the Group’s gross renewable energy capacity to 8.5GW, which is close to the target of 10GW of gross installed renewable capacity in 2025,” Sembcorp said in a statement on Sunday. “Sembcorp’s gross renewable energy portfolio will grow to 3GW with installed and under development in India.”
In September, the Singapore company announced plans to sell Sembcorp Energy India Ltd (SEIL), which operates two supercritical coal-fueled power projects totaling 2.6GW, to Tanveer Infrastructure Pte Ltd. 11,700 crores. Sembcorp has an energy portfolio of 16.7GW, of which 7.1GW is renewable energy from wind, solar and energy storage projects.
“The acquisition will be funded through internal cash resources and external borrowings. Completion of the acquisition is subject to customary closing conditions and is expected by the first quarter of 2023. Completion of the acquisition is expected to be accretive to earnings ‘, the statement said. And added, “Including Vector Green, Sembcorp’s gross renewable portfolio installed and under development in India will total 3GW, including 1GW solar assets and 2GW wind assets.”
Sembcorp, which has invested $4 billion in India, plans to focus on green energy investments in India amid the world’s largest clean energy transition.
“Sembcorp is committed to growing its renewable portfolio in India, which is one of the fastest growing renewable markets in the world,” Wong Kim Yin, President and CEO, Sembcorp Industries Group, said in the statement.
Investors have been attracted by India’s Climate Action Plan, with the country having an installed renewable energy capacity of 163GW and green energy projects registering nearly $78 billion in foreign direct investment.
“This acquisition brings significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio. It broadens and deepens our renewable energy capabilities and presence across states in India, and will position us in the country Positions us well for further green growth,” Vipul Tuli, CEO of Sembcorp Industries, South Asia, said in the statement.
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