Sembcorp Industries Ltd.’s wholly owned subsidiary, Sembcorp Inexperienced Infra Ltd., has entered into an settlement to purchase Vector Inexperienced Vitality Pvt. for Rs 2,780 crore or S$474 million from India Infrastructure Fund II, a fund managed by International Infrastructure Companions India Pvt.
Vector Inexperienced, an unbiased energy producer has renewable energy portfolio of 519 MW that features 495 MW of photo voltaic capability and 25 MW of wind capability. One other 64 MW of photo voltaic tasks are beneath building.
With this acquisition, Sembcorp’s gross renewable portfolio in India — together with the under-development tasks — will improve to three GW. The portfolio includes of 1 GW of photo voltaic property and a couple of GW of wind property, the corporate mentioned in an announcement.
The acquisition can be funded via inside money assets and exterior borrowings, the corporate mentioned.
Completion of the acquisition is topic to customary closing circumstances and is predicted by the primary quarter of 2023.
“The acquisition is predicted to be accretive to earnings upon completion,” the corporate mentioned.
“Sembcorp stays dedicated to rising its renewables portfolio in India, one of many quickest rising renewables markets on the earth,” mentioned Wong Kim Yin, group president and chief govt officer at Sembcorp Industries.
This acquisition is aligned with the group’s brown to inexperienced transformation technique.
With the completion of this acquisition, Sembcorp’s gross renewable vitality capability will improve to eight.5 GW (globally), pushing them nearer in direction of the 2025 goal of 10 GW.
“This acquisition brings important utility-scale photo voltaic capability to our India enterprise, which is able to complement our present wind portfolio,” mentioned Vipul Tuli, chief govt officer of South Asia, Sembcorp Industries.
Tuli added the deal will “broaden Sembcorp’s renewable vitality capabilities and presence throughout states in India, and can place them for additional inexperienced progress within the nation.”