Singapore-based Sembcorp Industries Ltd has announced that its subsidiary Sembcorp Green Infra Ltd (SGIL) has partnered with US private equity firm Global Infrastructure Partners India Infrastructure Fund II to buy a 100% stake in Vector Green Energy Pvt Ltd at an equity price of Rs. A compromise has been made. SGD 474M (USD 345M).
The final deal was reported in the first week of November, and Sembcorp and Torrent Power Ltd were in the race to buy Vector Green Energy on 13 August. Standard Chartered ran the sales process.
The one-time deal will add 583 megawatts (MW) of renewable assets to Sembcorp’s portfolio in India. Sembcorp, listed on the Singapore Exchange through SGIL, has a 1.051-gigawatt (GW) wind power capacity in India.
“Completion of the acquisition will bring the Group’s gross renewable energy capacity to 8.5GW, which is close to the target of 10GW of gross installed renewable capacity in 2025,” Sembcorp said in a statement. “Sembcorp’s gross renewable energy portfolio will grow to 3GW with installed and under development in India.”
Sembcorp, which has invested USD 4bn in India, plans to focus on green energy investments in India amid the world’s largest clean energy transition.
Investors have been attracted by India’s Climate Action Plan, with the country having an installed renewable energy capacity of 163GW and green energy projects registering nearly USD 78bn in foreign direct investment.