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Sembcorp Industries has finalized two agreements to procure a total of 428 MW in wind assets located in China and India.
Through its subsidiary, Sembcorp Energy (Shanghai) Holding Co., Ltd, Sembcorp signed an agreement to acquire the entire share capital of Qinzhou Yuanneng Wind Power Co., Ltd from Envision Energy Co., Ltd. The equity consideration for this transaction is approximately S$130 million1, and Qinzhou Yuanneng possesses 200MW of operational wind assets in Guangxi, China.
In a separate deal, Sembcorp’s subsidiary, Green Infra Wind Energy Limited (GIWEL), has entered into an agreement with Leap Green Energy Private Limited. GIWEL will acquire 100% of the share capital in two special purpose vehicles (SPVs) from Leap Green Energy, amounting to an equity consideration2 of approximately S$70 million3. These SPVs own 228 MW of operational wind assets situated in Madhya Pradesh, Maharashtra, and Rajasthan, India.
Sembcorp has also inked agreements to secure 673 MW of renewables capacity, aligning with its goal to achieve 25 GW of gross installed renewables capacity by 2028. Part of this commitment involves the proposed acquisition of 245 MW of renewables assets in Vietnam, disclosed on November 10, 2023. Upon successful completion of these transactions, Sembcorp’s global gross renewables capacity will climb to 12.6 GW.
The financing for these acquisitions will be a blend of internal cash resources and external funding, with the completion slated for the first half of 2024, provided the relevant conditions precedent, including regulatory approvals, are fulfilled.
The acquisitions are part of Sembcorp’s routine business operations and are not anticipated to significantly impact the earnings per share and net tangible assets per share for the financial year ending December 31, 2023.
