Sembcorp to Buy 245MW of Vietnamese Renewables

• Sembcorp Industries Ltd to acquire 245 MW of renewables capacity, including wind, solar and hydropower, for SGD-218-million. Deals to be completed in 2024 and will help Sembcorp reach its goal of 25 GW of gross installed renewables capacity by 2028.

Sembcorp Industries Ltd (SGX:U96) has agreed to purchase majority stakes in units of Vietnam’s Gelex Group JSC for SGD-218-million (USD 160.3m/EUR 149.9m). This will provide the Singaporean energy services provider with 245 MW of renewables capacity, including operational wind, solar and hydropower. Assets covered by the agreement have long-term power purchase agreements with state-owned power utility Vietnam Electricity (EVN). The deals are pending regulatory and other approvals and are expected to be completed in the first half of 2024. Sembcorp will finance the transactions through a mix of internal cash resources and debt. Last week, the company announced a target of having 25 GW of gross installed renewables capacity by 2028.

What Acquisition Could Bolster Sembcorp's Renewables Target?

• Acquisition of majority stakes in the units of the Vietnam-based Gelex Group JSC will provide Sembcorp with 245 MW of renewables capacity.
• The assets covered by the agreement have long-term power purchase agreements with Vietnam Electricity (EVN).
• The deals are expected to be completed in the first half of 2024.
• The transactions will be financed through a mix of internal cash resources and debt.
• Sembcorp’s target is to have 25 GW of gross installed renewables capacity by 2028.
• Acquisition of other renewable energy assets in the region could further bolster Sembcorp’s target.
• Possible acquisition of renewable energy assets from companies in Asia Pacific countries such as India, Japan, China, South Korea and Taiwan could boost Sembcorp’s capacity.