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Total corporate funding, including venture capital/private equity, public market, and debt financing in 9M 2019 was up 34 per cent year on year at $9 billion raised, compared to the $6.7 billion raised in 9M 2018.
Corporate funding into the solar sector in Q3 2019 came to $3 billion, compared to $1.3 billion in Q3 2018, according to Mercom Capital Group report on funding and merger and acquisition activity for the solar sector.
“Corporate funding activity so far this year is ahead of last year’s levels as demand outlook looks positive, and solar public companies continue to do well. In Q3 2019, over $100 million in venture funding went to technology and manufacturing-focused companies which is rare. Five IPOs and over a billion dollars in securitisation deals so far this year have been the highlights,” said Raj Prabhu, CEO of Mercom Capital Group.
In 9M 2019, global VC funding in the solar sector was 13 per cent higher with $1 billion compared to $889 million raised in the first nine months of 2018. Global VC/PE funding in Q3 2019 totaled $208 million in 11 deals.
The top VC deals in 9M 2019 included the $300 million raised by Renew Power, $144 million raised by Avaada Energy, $65 million secured by Yellow Door Energy, $50 million raised by BBOXX, and $50 million raised by Spruce Finance.
Solar public market financing rises
A total of 88 VC investors participated in solar funding in 9M 2019.
Solar public market financing in 9M 2019 rose to $2.25 billion in 13 deals, 25 per cent higher compared to $1.8 billion in 14 deals in 9M 2018. Public market financing into the solar sector came to $1.3 billion in five deals in Q3 2019 with the help of two IPOs.
Five IPOs in the solar sector have together brought in $1.3 billion in 9M 2019.
Announced debt financing activity in the first nine months of 2019 ($5.8 billion in 37 deals) was 43 per cent higher compared to the first nine months of 2018. Six solar securitisation deals brought in a total of $1 billion in 9M 2019. Cumulatively, $4.7 billion has now been raised through securitization deals since 2013.
There were a total of 13 project funding deals larger than $100 million in Q3 2019.
In 9M 2019, there were a total of 57 (10 disclosed) solar M&A transactions compared to 64 (16 disclosed) transactions in 9M 2018.
Project acquisition activity was lower in 9M 2019, with 15.9 GW of solar projects acquired, compared to 23.6 GW acquired in the same period last year. In Q3 2019, a total of 34 projects for a combined 4.3 GW were acquired.
Shapoorji Pallonji-backed Sterling & Wilson Solar, closed its initial public offer (IPO), backed by global institutional investors raising $406 million on the Bombay Stock Exchange.
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