SEMBCORP Industries is expanding its renewable energy business and branching into solar power for the first time.
The group is buying a 60 per cent stake in wind and solar company Green Infra in India from investment manager IDFC Alternatives for 10.6 billion rupees (S$227 million), in a move that will triple its current renewable energy generation capacity globally to over 1,000 watts.
Green Infra currently has an installed power capacity of 516 megawatts, which would rise to 700 megawatts by the end of the year.
This includes 665 megawatts of wind and 35 megawatts of solar assets in six states in India.
Sembcorp will be funding the acquisition through both internal funds and debt financing. The transaction, which is set to be completed by the end of the month, is not expected to have a material impact on its financial results for the current year.