Sembcorp acquires Vector Green

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Singapore-headquartered Sembcorp Industries (Sembcorp) announced this week the acquisition of Mumbai-based renewable power producer Vector Green Energy for S$474 million (US$345 million).

Sembcorp’s wholly-owned subsidiary Sembcorp Green Infra signed an agreement with India Infrastructure Fund II, a fund managed by Global Infrastructure Partners India, to acquire 100% interest in Vector Green Energy.

Vector Green is a private-sector power producer with a renewables portfolio of 583 MW 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.

With the acquisition of Vector Green’s assets, 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 and 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 8.5 GW, pushing us closer towards our 2025 target of 10 GW.”

Sembcorp will fund the acquisition through internal cash resources and external borrowings. The acquisition is expected to complete by the first quarter of 2023.

“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,” added Vipul Tuli, CEO of South Asia, Sembcorp Industries.

 

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