Home News Environmental, Social and Governance

Sembcorp to acquire India renewable energy portfolio for $474 million

The Edge Singapore
The Edge Singapore11/13/2022 10:13 PM GMT+08  • 2 min read
Sembcorp to acquire India renewable energy portfolio for $474 million
Photo: Albert Chua
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Sembcorp Industries plans to acquire an India-based renewable energy company from Global Infrastructure Partners India for $474 million.

The target, Vector Green Energy, is described by Sembcorp as an independent power producer with renewable power generation assets spread across 13 Indian states.

The portfolio includes 495MW of solar capacity and 24MW of wind capacity in operation, with 64MW of solar projects under development.

Including Vector Green, Sembcorp’s gross renewables portfolio installed and under development in India will total 3GW, comprising 1GW of solar assets and 2GW of wind assets.

Wong Kim Yin, group president and CEO of Sembcorp Industries (picture) says the company "remains committed" to growing its renewables portfolio in India, one of the fastest growing renewables markets in the world.

"This acquisition is aligned with the group’s brown to green transformation strategy," he adds.

See also: Tech billionaire’s loan to keep solar export dream to Singapore alive

With the completion of this acquisition, Sembcorp's gross renewable energy capacity will increase to 8.5GW. It has a 2025 target of 10GW.

"This acquisition brings significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio," says Vipul Tuli, Sembcorp's CEO of South Asia.

"It also broadens and deepens our renewable energy capabilities and presence across states in India, and positions us well for further green growth in the country," he adds.

See also: For value or values: Can sustainable investing endure more hits in 2023?

Sembcorp plans to fund the acquisition, which is likely to close in 1Q 2023 via internal cash and external borrowings.

The company expects this acquisition to be accretive to earnings upon completion.

Sembcorp shares close Nov 11 at $3.04, up 0.66% for the day and up 51.24% year to date.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.