Keppel Infrastructure Trust proposes S$111.6 million power plant stake purchase
The proposed acquisition of 70 per cent of Keppel Sakra Cogen is expected to lift distributions per unit, according to the trust’s manager.
Keppel Infrastructure Trust (KIT) plans to buy a 70 per cent interest in Singapore power plant Keppel Sakra Cogen (KSC) for up to S$111.6 million, its trustee-manager said on Nov 11. The sellers are Keppel Asia Infrastructure Fund and a co-investor.
The price consists of S$105 million plus an additional amount capped at S$6.6 million, assuming completion by March 10, 2027. Including projected net debt after refinancing, the transaction values the whole of KSC at an enterprise value exceeding S$780 million.
The trustee-manager expects the purchase to increase distributions per unit (DPU). On a pro forma FY2025 basis, DPU would rise about 5.1 per cent, from S$0.0394 to S$0.0414, before scheduled principal repayments begin on KSC’s refinanced debt. Once those repayments start, the increase would be about 2.8 per cent, taking DPU to S$0.0405.
KIT plans to use internal funds, external borrowing or both to finance the purchase. Keppel’s infrastructure division will keep its 30 per cent interest.
Located on Jurong Island, the 600-megawatt plant began commercial operations in May 2026. It uses natural gas and can co-fire hydrogen at up to 30 per cent. The trustee-manager described KSC as Singapore’s first hydrogen-compatible combined-cycle plant.
A capacity tolling agreement with Keppel Electric runs for 30 years. Payments are fixed according to KSC’s availability and capacity, rather than electricity market prices.
The purchase requires regulatory clearance and approval by KIT unitholders at an extraordinary general meeting. KIT will issue a circular later.
