According to a press release, the acquisition will increase Sembcorp’s gross installed renewable energy capacity to 8.5 GW, bringing it closer to its 2025 goal of 10 GW.
On November 13, Singapore-based Sembcorp Industries stated that its wholly-owned subsidiary Sembcorp Green Infra has signed a contract to buy Vector Green Energy for Rs 2,780 crore in order to increase its presence in India’s renewable energy market. The acquisition will be paid for with internal cash reserves and borrowings from third parties. According to the statement, the acquisition should be completed by the first quarter of 2023, subject to the usual closing conditions.
According to a press release, the acquisition will increase Sembcorp’s gross installed renewable energy capacity to 8.5 GW, bringing it closer to its 2025 goal of 10 GW.
“Sembcorp Industries (Sembcorp) announces that its wholly-owned subsidiary, Sembcorp Green Infra Limited, has signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India Pvt Ltd, to acquire 100% interest in Vector Green Energy Private Limited (Vector Green) for a base equity consideration2 of approximately INR27.8 billion approximately S$474 million),” the statement said.
An Independent Power Producer, Vector Green has assets for the generation of renewable energy in 13 Indian states. The portfolio contains 495MW of operational solar power, 24MW of operational wind capacity, and 64MW of operational solar projects. Sembcorp’s total installed and planned gross renewable energy capacity in India will be 3GW, including Vector Green, with 1GW of solar assets and 2GW of wind assets, according to the announcement.
Wong “Sembcorp remains committed to increasing its renewables portfolio in India, one of the world’s fastest growing renewables markets,” stated Kim Yin, Group President & CEO of Sembcorp Industries. The Group’s aim for transforming from brown to green is consistent with this purchase. As soon as this transaction is complete, Sembcorp’s gross renewable energy capacity will rise to 8.5GW4, driving us closer to our goal of our 2025 target of 10GW.”
