Singapore’s Sembcorp Signs Pact To Acquire Vector Green Energy For Rs 2780 Crore

Singapore-based Sembcorp Industries has announced that its wholly-owned subsidiary, Sembcorp Green Infra Limited, has signed an agreement with India Infrastructure Fund II to acquire 100 per cent interest in Vector Green Energy Private Limited for a base equity consideration of approximately Rs 2780 crore (approximately S$474 million). India Infrastructure Fund II is a fund managed by Global Infrastructure Partners India.

The official statement said that the new acquisition will swell the capacity of Sembcorp to 8.5 GW. Vector Green is an Independent Power Producer (IPP) with renewable power generation assets spread across 13 Indian states. The portfolio includes 495 MW of solar capacity and 24 MW of wind capacity in operation, with 64 MW of solar projects under development. Including Vector Green, Sembcorp’s gross renewables portfolio installed and under development in India will total 3-GW, comprising 1-GW of solar assets and 2-GW of wind assets.

Wong Kim Yin, Group President & CEO, Sembcorp Industries, said, “Sembcorp 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. With the completion of this acquisition, Sembcorp’s gross renewable energy capacity will increase to 8.5GW, pushing us closer towards our 2025 target of 10GW.”

Vipul Tuli, CEO of South Asia, Sembcorp Industries, added, “This acquisition brings significant utility-scale solar capacity to our India business, which will complement our existing wind portfolio. 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.”

Sembcorp said that the acquisition will be funded through internal cash resources and external borrowings and the completion of the acquisition will remain subject to customary closing conditions. Its expected to be closed by the first quarter of 2023. The acquisition is expected to be accretive to earnings upon completion.

A few months ago, Sembcorp also forged several partnerships towards the development of energy and urban solutions to facilitate Vietnam’s energy transition and sustainable development.