Sembcorp to acquire wind and solar portfolio from CGN Private Equity fund for S$700M

Electricity advertisement for Sembcorp Industries. Note: Photo taken pre-CovidElectricity advertisement for Sembcorp Industries. Note: Photo taken pre-Covid

Sembcorp Industries has entered a deal to acquire a 98 percent stake in a portfolio of operational wind and solar assets from CGN Capital Partners Infrastructure Fund III and its affiliates for around 3.3 billion yuan, or around S$700 million, the Singapore-listed energy and infrastructure player said in a filing to SGX Friday.

CGN Capital Partners Infrastructure Fund III is an unlisted private equity infrastructure fund from CGN Private Equity Fund Management, which invests in renewable energy assets in China. The target size of the fund was 5 billion yuan, or around US$778.5 million, according to data from InfraPPP.

Sembcorp said the wind and solar portfolio, which has a total installed capacity of 658 megawatts, will provide the company with a scalable renewable platform to expand in China.

“The acquisition of this renewables growth platform in China is an important step towards our target to have 10GW of gross installed renewables capacity by 2025. We are focused on the execution of our growth strategy across our markets to achieve our brown to green
transformation,” Wong Kim Yin, group president and CEO at Sembcorp Industries, said in the statement.

The assets are located in Hebei, Henan and Shandong provinces and are eligible for China’s fixed feed-in tariffs under the country’s renewable energy poilcy, the filing said.

Alex Tan, CEO for China at Sembcorp, said the mainland’s renewables market was a priority for Sembcorp, and the acquisition would double the company’s gross capacity in China to 1,400MW from 725MW previously.

Read Sembcorp Industries’ statement on the deal for more details of the assets.