Singapore’s Keppel Corp to Buy Majority Stake in Shell-backed Cleantech

Cleantech Solar, a Singapore-headquartered renewable energy to corporates, announced today that a consortium of Keppel Corporation Limited (Keppel), Keppel Asia Infrastructure Fund LP (KAIF) and a co-investor of KAIF, through Cloud Alpha Pte Ltd, is acquiring a 51% equity interest in Cleantech Renewable Assets Pte. Ltd. from Cleantech Energy Corporation Pte. Ltd.

The remaining 49% of the equity interest in Cleantech is held by its existing shareholder, Shell Eastern Petroleum (Pte) Ltd, which will continue to support its future growth in the region.

Founded in 2015, Cleantech Solar offers sustainable solar energy solutions to large commercial and industrial customers across India and Southeast Asia.

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Raju Shukla, Founder and CEO of Cleantech Solar, said, “It is indeed a matter of great pride that we now have the backing from Keppel Corporation and Shell – two world leading corporations with long term commitment to renewable energy, sustainability, and Net Zero emissions. Cleantech is targeting to achieve a cumulative generation capacity of 3 GW within five years.”

Mr Loh Chin Hua, CEO of Keppel, said, “The investment in Cleantech reflects Keppel’s commitment to sustainability and our Vision 2030 plans to grow our renewables business. It allows us to not only tap the expertise and experience of Cleantech in solar energy projects, but also explore opportunities for collaboration with other parts of the Keppel Group. Through acquiring a majority stake in an established platform together with KAIF and a like-minded investor, we would be able to accelerate Keppel’s growth in the renewables space, as we work towards achieving and surpassing our target of 7GW of renewable energy assets by 2030.”

Completion of the transaction is subject to and conditional upon certain customary conditions, including regulatory and other approvals. The transaction is expected to close in 1Q 2022.

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Standard Chartered acted as exclusive Financial Advisor to Cleantech for this transaction.

Launched in January 2020, the KAIF Partnership and its co-investment vehicles are said to have aggregate commitments of approximately US$1 billion from global institutional investors.