Sembcorp Industries announced 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 Private Limited. This agreement intends to acquire 100 per cent interest in Vector Green Energy Private Limited for a base equity consideration of approximately Rs 27.8 billion.

Vector Green is an independent power producer with renewable power generation assets spanning 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. Sembcorp’s gross renewables portfolio in India after including Vector Green will cumulate to 3 GW, including 1 GW solar assets and 2 GW wind assets.

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.

Sembcorp Industries (Sembcorp) is a leading energy and urban solutions provider. Headquartered in Singapore, it has a balanced energy portfolio of 16.7GW, with 7.1GW of renewable energy capacity comprising solar, wind and energy storage globally. Sembcorp is listed on the main board of the Singapore Exchange.

REGlobal’s Views: This deal will help Sembcorp to bring its gross renewable energy capacity to its aim of 10 GW of gross installed renewable capacity by 2025.