Keppel Corporation-led consortium has acquired a 51 per cent equity stake in Singapore-based solar developer Cleantech Solar for up to $150 million. Keppel Asia Infrastructure Fund LP (KAIF) is a member of the consortium, as well as a co-investor. Cloud Alpha Pte Limited, a subsidiary of the consortium, will buy the stake. The transaction is likely to close in 2022’s first quarter. The remaining 49 per cent of Cleantech Solar’s ownership is held by Shell Eastern Petroleum Limited, the company’s current shareholder.

Cleantech Solar is primarily interested in the commercial and industrial segment. It currently has more than 600 MW of solar power in various stages of operation, construction, and development. India, Thailand, Malaysia, Indonesia, Singapore, and Vietnam are among the nations where it has assets. The company stated that it has a huge pipeline of recognised potential across key markets and that considerable growth opportunities will continue to exist across the area. Over the following five years, it expects to reach a solar power capacity of 3 GW.

In October 2021, Cleantech Solar has announced the financial close of $26.72 million senior secured loan facility with NIIF Infrastructure. The loan would be utilised to refinance the company’s portfolio of open access solar projects in India. It will also help optimise the overall capital structure and funding costs for the portfolio.

REGlobal’s Views: Having the backing of large investors like Keppel and Shell will help Cleantech Solar to expand its portfolio and accelerate its pace towards reaching its goal of 3 GW of projects.