Singapore-based renewable energy company Sembcorp’s wholly-owned subsidiary Sembcorp Green Infra Limited has entered into an agreement with India Infrastructure Fund II, managed by Global Infrastructure Partners, to acquire 100% of Vector Green in a ₹27.8 billion ($474 million) deal.

Including Vector Green, Sembcorp’s gross renewables portfolio installed and under development in India will total 3 GW, comprising 1 GW of solar and 2 GW of wind assets. The acquisition would be funded through internal cash resources and external borrowings.

Vector Green is an independent power producer with renewable power generation assets across 13 Indian states. The company’s portfolio includes 495 MW of solar and 24 MW of wind projects in operation and 64 MW of solar projects under development.

“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 10GW,” Wong Kim Yin, Group President & CEO of Sembcorp Industries, said.

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

Completion of the acquisition is subject to customary closing conditions and is likely to be done by the first quarter of 2023.

In October last year, Vector Green received a loan of ~₹11 billion (~$135.57 million) from the Indian Renewable Energy Development Agency (IREDA), the highest-ever disbursement to a single company in a day. The loan was to be utilized for the company’s six operational projects.

In its bid to turn its complete portfolio from brown to green, Sembcorp’s wholly owned subsidiary Sembcorp Utilities recently entered into a share purchase agreement to sell 100% of the shares of Sembcorp Energy India to Tanweer Infrastructure, which included two supercritical coal-fired plants totaling 2.6 GW.

In the first half of 2022, the company recorded a net profit of S$490 million (~$356.66 million), a year-over-year n increase of 94% compared to S$46 (~$33.48 million)