Keppel Corporation acquires majority stake in Cleantech Solar for $ 150 million

The consortium led by Keppel Corporation has announced that it will acquire a 51% stake in Singapore-based solar developer Cleantech Solar for up to $ 150 million. The consortium includes Keppel Asia Infrastructure Fund LP (KAIF) and a KAIF co-investor.

The consortium will acquire the stake through Cloud Alpha Pte Limited. The transaction is expected to close in the first quarter (Q1) of 2022.

Shell Eastern Petroleum Limited, the current shareholder of Cleantech Solar, owns the remaining 49% of the stake. Shell will continue to support its future growth in the region.

With this transaction, the partnership between two long-term strategic investors – Keppel and Shell – will provide growth capital and support Cleantech’s ambitious growth plans over the next five years.

Cleantech Solar focuses on the commercial and industrial (C&I) segment. It has over 600 MW of solar capacity at various stages of operation, construction and development. Its assets are spread across six countries: India, Thailand, Malaysia, Indonesia, Singapore and Vietnam.

The company said it has a large pipeline of identified opportunities in key markets and will continue to witness significant growth opportunities in the region. It aims to achieve 3 GW of solar power capacity over the next five years.

Cleantech said it has around 120 leading consumers, 95% of whom are spread across energy-intensive sectors including automotive, industrial, consumer and retail, energy and chemicals. Consumers include Apollo Tires, Cargill, Coca-Cola, Shell Lubricants, Akzo Nobel, and Kerry Ingredients.

Commenting on the acquisition, Loh Chin Hua, CEO of Keppel Corporation Limited, said, “By acquiring a controlling stake in a platform established with KAIF and a like-minded investor, we would be able to accelerate the growth of Keppel in the field of renewable energies. as we strive to meet and exceed our target of 7 GW of renewable energy assets by 2030. ”

In October 2021, Cleantech Solar announced the financial close of a senior secured loan facility of 2 billion yen (approximately $ 26.72 million) with NIIF Infrastructure. The loan is expected to be used to refinance the company’s portfolio of open access solar projects in India.

Last year, Cleantech Solar received a green loan of $ 75 million (~ 5.67 billion yen) from the Singapore branch of ING Bank to support its expansion in Southeast Asia.

According to the Mercom Solar Financing and Mergers and Acquisitions Report for 9 Months and Q3 2021, there were 29 Solar M&A (M&A) deals in Q3 2021, compared to 34 M&A deals. and acquisitions in the second quarter of 2021.