Sembcorp Industries : to Acquire 35% Interest in 1.9GW of Operational Wind and Solar Assets in China

- Growth momentum towards its Group target of 10GW of gross installed renewables capacity by 2025

Sembcorp Industries (Sembcorp) announces that it has, through its wholly-owned subsidiary Sembcorp Energy (Shanghai) Holding Co. Ltd, signed an equity transfer agreement with China state-owned investment holding company, State Development Investment Corporate Group (SDIC)'s Shanghai SDIC Xieli Development Equity Fund Partnership (Xieli Fund), to take over its 35% interest in SDIC New Energy for an equity consideration of approximately RMB 1.5 billion (approximately S$320 million). SDIC New Energy's portfolio consists of 30 operational wind and solar PV assets with a total gross installed capacity of about 1.9GW located across seven provincial regions in China. SDIC Power, the public-listed power arm of SDIC, is the remaining 65% shareholder of SDIC New Energy.

Wong Kim Yin, Group President & CEO, Sembcorp Industries said: "We are committed to achieving our Group target of 10GW of gross installed renewables capacity by 2025. China is an important part of our brown to green transformation plan. We are pleased to partner SDIC Power, to grow the joint venture together. Along with our recently announced 658MW acquisition, our Group renewables portfolio is expected to reach a gross capacity of 6.1GW."

Alex Tan, CEO of China, Sembcorp Industries added: "Sembcorp is keen to build up our renewables portfolio in China, the world's largest and fastest-growing renewables market. SDIC Power is a top SOE power company in China, with a strong track record and capabilities in the China power and clean energy industry. We believe we have complementing strengths, and we are committed to work alongside SDIC Power to drive further growth in renewables through this joint venture."

The consideration for the transaction was determined on a willing-buyer willing-seller basis, considering the operational quality, financials and cashflow generation of the assets via customary valuation techniques. Sembcorp's investment will be funded through a mix of internal cash resources and external borrowings. Completion of the acquisition is expected in the first half of 2022, and is subject to customary conditions precedent including regulatory approvals and the signing of a joint venture agreement with SDIC Power. The acquisition is expected to be accretive to earnings from the first year of the acquisition. For more information on the SDIC New Energy portfolio, please see the Appendix.

This acquisition is in the ordinary course of business of Sembcorp Industries and is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2021.

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Appendix: List of Project Assets in SDIC New Energy

For analysts' and media queries, please contact:

Analysts
Ling Xin Jin (Ms)
Assistant Vice President
Group Strategic Communications
DID: +65 6723 3384
Email: [email protected]

Media
Archanaa N. Raja (Ms)
Manager
Group Strategic Communications
DID: +65 6723 3186
Email: [email protected]orp.com

ABOUT SEMBCORP INDUSTRIES
(Company registration: 199802418D)
Sembcorp Industries (Sembcorp) is a leading energy and urban solutions provider, driven by its purpose to do good and play its part in building a sustainable future.

Headquartered in Singapore, Sembcorp leverages its sector expertise and global track record to deliver innovative solutions that support the energy transition and sustainable development. By focusing on growing its renewables and integrated urban solutions businesses, it aims to transform its portfolio towards a greener future and be a leading provider of sustainable solutions.

Sembcorp has a balanced energy portfolio of over 13GW, with more than 3.5GW of renewable energy capacity comprising solar, wind and energy storage globally. The company also has a proven track record of transforming raw land into sustainable urban developments, with a project portfolio spanning over 12,000 hectares across Asia.

Sembcorp is listed on the main board of the Singapore Exchange. It is a component stock of the Straits Times Index and sustainability indices including the FTSE4Good Index and the iEdge SG ESG indices. For more information, please visit www.sembcorp.com

ABOUT SEMBCORP IN CHINA
Sembcorp has invested in the China market for over 20 years, providing renewable energy and high-efficiency power generation facilities, innovative water and wastewater treatment solutions, as well as sustainable urban developments. A leader in the industrial water and wastewater treatment business in China, Sembcorp has 18 power and water assets across 11 provincial regions. It has a total operational capacity of 725MW of wind power assets across Hebei and Inner Mongolia.