Singapore-based development company Sembcorp (Sembcorp Industries) announced in early June that its subsidiary Sembcorp Energy (Shanghai) Holding has completed the acquisition of a 98% stake in a renewable energy portfolio of CGN Capital Partners Infrastructure Fund III (CGN Fund III) and its affiliates. CGN Fund III is an unlisted private equity fund that focuses on renewable energy projects. The portfolio comprises around 658MW of PV and wind power projects in China. This announcement was first picked up by other renewable energy news outlets.

Sembcorp already announced in November last year that Sembcorp Energy (Shanghai) Holding entered into an agreement with CGN Fund III and its affiliates to acquire the 98% stake in the renewable energy portfolio for CNY 3.3 billion (around USD 700 million). The acquisition would be funded through Sembcorp’s own cash resources as well as external borrowings. The portfolio consists of PV projects totaling 240MW and wind power projects totaling 417.5MW. They are mainly located in the provinces of Hebei, Henan, and Shandong. When the deal was first disclosed, Sembcorp said it would expand its PV and wind power assets in China from 725MW to 1,400MW. The company’s global renewable generation assets that is operational or under development would also expand to around 6.8GW. More recently, Sembcorp stated that the company has about 3.6GW of renewable energy projects that are either operational or under development in China.

Sembcorp is currently implementing its “Brow to Green” strategy that calls for the company to attain 10GW of installed renewable generation capacity by 2025. It is worth noting that Sembcorp has a marine division that builds offshore oil platforms. However, the division was demerged in 2020 due to poor financial performance. Sembcorp now concentrates its investments on renewable energy and urban development.