waaree december
buybestinclassgoodwesolarinvertersandwinexcitingprizes

Sembcorp to Acquire Vector Green, Adding 583 MW of Renewable Assets in India

0
117
SECI Pays Solar & Wind Developers Rs. 8.04 B In October 10% Less Than September

Reading Time: 2 minutes

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 consideration of approximately INR27.8 billion (approximately S$474 million).

pixon_december

Vector Green is 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 & 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.”

Also Read  GUVNL Invites Bids to Procure Power from 500 MW Solar Projects with Greenshoe Option of Additional 500 MW

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.”

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. The acquisition is expected to be accretive to earnings upon completion. For more information on Vector Green’s portfolio, please see the Appendix.

This acquisition is in the ordinary course of business of Sembcorp Industries and is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2022.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.