Sembcorp buying 245 MW of Vietnamese renewables in deal with Gelex

Singapore’s Sembcorp Industries Ltd (SGX:U96) said on Friday it has agreed to buy majority stakes in units of Vietnam’s Gelex Group JSC in a SGD-218-million (USD 160.3m/EUR 149.9m) deal that would provide it with 245 MW of renewables capacity.

The Singaporean energy services provider will acquire stakes of between 73% and 100% in the target entities, it said on Friday. The transactions, to be carried out through Sembcorp Solar Vietnam Pte Ltd, will add operational wind, solar and hydropower capacity to its fleet, expanding its renewable energy portfolio in Vietnam to over 450 MW.

All assets covered by the agreement have long-term power purchase agreements (PPAs) in place with state-owned power utility Vietnam Electricity (EVN).

The deals are pending regulatory and other approvals and are seen to be completed in the first half of 2024. Once the transactions are finalised, the Sembcorp group will have 12.2 GW of gross renewables capacity in total.

The Singaporean company will finance the deals through a mix of internal cash resources and debt. Last week, it unveiled a target of having 25 GW of gross installed renewables capacity by 2028.

(SGD 1.0 = USD 0.735/EUR 0.688)

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