SembCorp Industries

[cyclone]

Sembcorp Signs 20-Year Deal to Supply Solar Power to Support Facebook's Singapore Operations

Sembcorp Industries (Sembcorp) announced that it has signed a long-term solar energy deal with US-headquartered tech company, Facebook. Under this deal, Sembcorp will help provide locally-sourced renewable power to support Facebook’s recently announced 170,000 square metre Singapore data centre, as well as its other Singapore operations, over the next 20 years.

This contract involves the sale of 100% of the renewable energy attributes from the surplus power generated by Sembcorp’s 50 MWp of solar panels. These sales will commence in tandem with the installation of the rooftop panels between end-2018 and 2020. The contract is not expected to have a material impact on the earnings per share and net asset value of Sembcorp Industries for the financial year ending December 31, 2018.

This makes Sembcorp Facebook’s first renewable energy partner in Asia.

More details in http://infopub.sgx.com/FileOpen/SEMBCORP...eID=525379

[cyclone]

Sembcorp's First Thermal Power Plant in Bangladesh Commences Full Commercial Operation

Singapore, May 29, 2019 – Sembcorp Industries (Sembcorp) is pleased to announce that its Sirajganj Unit 4 combined-cycle gas turbine (CCGT) power plant in Bangladesh has successfully commenced full commercial operation. The approximately US$412 million, dual-fuel power plant earlier began first-phase operations in single-cycle mode in October 2018. Now, the plant is fully operational in combined-cycle mode, signifying an important new milestone.

The Sirajganj Unit 4 CCGT project is Bangladesh’s first public-private partnership power plant backed by foreign investment. Located in Soydabad, Sirajganj, the state-of-the-art plant has a contractual capacity of 414 megawatts, and is primarily gas-fired, with high-speed diesel as its backup fuel. It was developed, and is owned and operated by Sembcorp North-West Power Company, a joint venture that is 71%-owned by Sembcorp Utilities and 29% by Bangladesh's state-owned North-West Power Generation Company. The plant supplies power to Bangladesh Power Development Board under a 22-year power purchase agreement.

More details in https://links.sgx.com/FileOpen/SEMBCORP%...eID=561406

[cyclone]

Disposal of Holding in Gallant Venture

Sembcorp Development, a wholly-owned subsidiary of Sembcorp Industries, has disposed of its entire 10.27% equity interest, representing 548,038,066 ordinary shares, in Gallant Venture (GV) for a consideration of S$62 million. Following the disposal, Sembcorp Development has ceased to be a shareholder of GV.

More details in https://links.sgx.com/FileOpen/SGX_Dispo...eID=563102

[cyclone]

Sembcorp to Build Solar Energy System to Power Singapore's Changi Exhibition Centre

Sembcorp Industries (Sembcorp) has signed an long-term agreement with Experia Events to install, own and operate rooftop solar panels with a total capacity of 6.3 megawatt peak, atop its flagship facility, Changi Exhibition Centre (CEC).

Built on a sprawling 30-hectare site, the Changi Exhibition Centre is a multi-dimensional facility that has hosted many key aviation, sporting and lifestyle events in Singapore. The rooftop solar energy system, comprising over 15,000 solar panels, will be built on top of the facility’s 40,000 square metre exhibition hall. It will help to power the onsite operations at CEC and any surplus power generated from this system will be channeled to the grid.

Upon completion and installation of the solar energy system in November 2019, it is expected to produce over 7,840 megawatt hours of power annually. This is enough renewable energy to power more than 1,750 four-room HDB flats for a year.

The solar energy system will also help avoid over 3.2 million kilogrammes of carbon dioxide emissions a year, equivalent to the emissions avoided from taking around 715 cars off the road, or planting over 39,000 trees.

More details in https://links.sgx.com/FileOpen/SEMBCORP%...eID=563800

[cyclone]

Sembcorp Industries to Provide S$2 Billion Subordinated Loan Facility to Sembcorp Marine

Sembcorp Industries and Sembcorp Marine today announce that Sembcorp Industries is providing Sembcorp Marine with a five-year subordinated loan facility (Subordinated Loan) of S$2 billion which will strengthen Sembcorp Marine’s financial position amidst the current downturn in the global offshore and marine industry. Sembcorp Marine will be using the Subordinated Loan to retire approximately S$1.5 billion of borrowings, and the balance S$500 million for working capital and general corporate purposes.

Sembcorp Industries, Sembcorp Marine’s largest shareholder, will issue S$1.5 billion of bonds (Bonds) to DBS Bank as Sole Lead Manager and initial purchaser (Lead Manager) through a private placement. The investors of the Bonds include Temasek. The terms and conditions of the Bonds are in line with Sembcorp Industries’ existing medium term note programme. Sembcorp Industries will utilise the proceeds from the Bonds to fund S$1.5 billion of the Subordinated Loan (which will be interest-bearing) to Sembcorp Marine, with the balance S$500 million to be funded by Sembcorp Industries’ existing available resources and facilities.

Assuming the S$2 billion is fully drawn as at March 31, 2019, Sembcorp Group’s gross debt-tocapitalisation ratio would increase from 56% to 58%.

More details in https://links.sgx.com/FileOpen/SCI%20TO%20PROVIDE%20S$2B%20SUBORDINATED%20LOAN%20FACILITY%20TO%20SCM%20TO%20BETTER%20POSITION....ashx?App=Announcement&FileID=564262

[dreamybear]

Political risk involved for companies investing overseas, e.g. change of govt

------------------------------------------------------------------------------------------

Amaravati project low priority for new Andhra Pradesh govt
Published Sep 10, 2019, 5:00 am SGT

Prospects appear dire for the stalled capital city project of Amaravati, which was being developed in the southern Indian state of Andhra Pradesh with Singapore's help.

The zombie project, mothballed since the state elected Mr Jagan Mohan Reddy as its new Chief Minister in May, came up for discussion at the India Singapore Business and Innovation Summit........

Singapore has been involved in the project since its start in 2014, when Andhra Pradesh embarked on the venture because it lost its capital city Hyderabad to the newly created state of Telangana. Surbana Jurong submitted the city's masterplan in 2015, and a consortium of Ascendas-Singbridge and Sembcorp Development was announced in 2017 as the master developers. It was conceived to be 10 times the size of Singapore, requiring an investment of billions of dollars........

"So, I would ask everyone to give time to the new government in Andhra Pradesh to sort out its priorities, then allow the private sector to make its own decisions, rationally, on commercial grounds."

Read more : https://www.straitstimes.com/singapore/a...adesh-govt

[BRT]

i wonder how sembcorp's solar deals are going. if execution is good, can we expect long term stable cash flow from electricity sales? many of these deals are 20y long. seems to have a strong push recently in sg, with the facebook data center news, ascendas buildings, solarnova/hdb projects, now this:

SEMBCORP AND UBS SIGN DEAL FOR SOLAR-POWERED UBS OFFICES IN
SINGAPORE
https://links.sgx.com/FileOpen/SEMBCORP%...eID=578174

[cyclone]

Divestment of Commercial Construction Business of Sembcorp Design & Construction

Sembcorp Industries (the Group) announces that it has signed an agreement to divest the commercial construction business under its wholly-owned subsidiary, Sembcorp Design & Construction (SDC), to Chip Eng Seng Construction Pte Ltd, a wholly-owned subsidiary of Chip Eng Seng Corporation Ltd (CES) for gross proceeds of approximately S$49.9 million.

The consideration for the sale was arrived at pursuant to a competitive sale process and on an arm’s length willing-buyer-willing-seller basis. CES is listed on the mainboard of the Singapore Exchange and the principal activities of CES and its subsidiaries are in property development, construction, hospitality, property investment, and education.

The Group will retain SDC’s defence-related construction business by transferring its stake to Sembcorp Specialised Construction (SSC), a wholly-owned subsidiary of the Group.

This divestment is in line with the Group’s strategy to unlock value and recycle capital as it repositions to be a global integrated energy player. The sale of the commercial construction business is expected to be completed by the end of the year, subject to the satisfaction of certain conditions precedent, including the completion of the restructuring of the businesses in SDC. Upon completion of the sale of the commercial construction business and transfer of the defence construction business to SSC, SDC will cease to be part of the Group.

[BRT]

wow the political risk...all the planning since 2014...

Amaravati capital city startup area project terminated: Sembcorp
https://www.businesstimes.com.sg/compani...d-sembcorp

The Andhra Pradesh government sought Singapore's help in 2014 in planning the new capital, the brainchild of its then chief minister N Chandrababu Naidu.
In a separate announcement, Singapore's Minister-in-charge of Trade Relations S Iswaran noted that the newly elected government of Andhra Pradesh had decided not to proceed with the startup area given its other priorities for the state.

[cyclone]

Sembcorp Subsidiary Acquires 100% Equity Interest in VESS and Public Cleaning Business of VESSI

Sembcorp Industries (Sembcorp) announces that it has, through its wholly owned subsidiary SembWaste, entered into a sale and purchase agreement with Veolia Environmental Services Asia to acquire 100% equity interest in Veolia ES Singapore (VESS) and the public cleaning business of Veolia ES Singapore Industrial (VESSI) for approximately S$28 million subject to final purchase price adjustment upon completion. Completion of the deal is subject to conditions precedent including regulatory approvals.

The businesses to be acquired hold contracts for public and commercial waste and recyclable collections covering recovery and recycling, public and commercial cleaning services, as well as associated properties which include a materials recovery facility.

More details in https://links.sgx.com/FileOpen/Sembcorp%...eID=592253