With solar installations in 2016 totaling 4 GW, financial activity
was robust in the fourth quarter of 2016, with approximately $1.1 billion (~Rs.76.6
billion) in announced corporate, project funding and M&A deals according to
the recently released Q4 and Annual 2016
Solar Funding and M&A Report by Mercom Capital Group.
MYSUN, an online solar marketplace, received $2.5 million (~Rs.169.8 million) in VC
Funding from Hemant Taneja, Managing Director at General Catalyst Partners.
Hindustan Clean Energy, a renewable energy subsidiary of
Hindustan Power Projects, raised $130 million (~Rs.8.82 billion) in debt
financing from Farallon Capital Management and Bank of America Merrill Lynch. ACME
Cleantech Solutions, a flagship company of Acme Group and a solar project
developer, raised $72.7 million (~Rs.4.93 billion) secured and listed
non-convertible debentures (NCD) for a tenor of 66 months from Piramal
For the first time an Indian solar power developer ventured
into IPO. Azure Power, raised
$61.6 million (~Rs.4.18 billion) in its IPO, $75 million (~Rs.5.09 billion) through private placement of equity shares and ~$25 million (~Rs.1.7 billion) in a pre-IPO
Approximately $369 million (~Rs.25.04 billion) in project
funding was announced in Q4 2016. Azure Power secured ~$309 million (~Rs.20.98
billion) in project finance and also secured a $20 million (~Rs.1.36 billion) long-term
low-cost debt financing facility for 15 years at a cost of capital of 4.74
percent from Overseas Private Investment Corporation (OPIC). Ezon Energy, a
renewable energy project developer and integrator, raised ~$21 million (~Rs.1.4 billion) from a Japanese investor, Natori Nohisa. Bhageria Industries, a
manufacturer and supplier of dyes and intermediates, secured
~$14 million (~Rs.950 million) loan for construction of 30 MW large-scale
grid-connected solar projects from Export Import Bank of India, and Sam Solar
secured a ~$4.8 million (~Rs.325 million) loan from Power Finance Corporation.
Project acquisition activity also picked up in Q4 2016. Greenko
Energy Holdings, an owner and operator of renewable energy projects, completed the
of SunEdison’s 587 MW Indian wind and
solar projects for a cash payment of $42 million (~Rs.2.85 billion) and
assumption of project-level debt of $350 million (~Rs.23.77 billion) (at an
average interest rate of 11.3 percent).
Suzlon, a wind turbine manufacturer and renewable energy
project developer, entered into a joint
venture with Ostro Energy, which is expected to acquire a 49 percent stake
in Prathamesh Solar Farms at Wanaparthy, Telangana. IDFC Alternatives, an
Indian Infrastructure fund, acquired
three solar projects totaling 45 MW in Punjab and Rajasthan from Punj Lloyd
Infrastructure, an engineering and construction services company.
Fonroche Energie, a France-based developer of renewable
energy projects, sold
two solar projects totaling 22.3 MW located in Gajner, Rajasthan, India, to
Hinduja Group, an Indian conglomerate, at an undisclosed price. Canadian Solar
formed two joint
ventures with Suzlon, by acquiring 49 percent stakes in special purpose
vehicles, to develop two solar projects of 15 MW each in Telangana. Unisun
Energy Group, a PV project investor, developer, and clean energy solutions
provider, formed a joint
venture with Suzlon, and acquired 49 percent stake in Vayudoot Solarfarms project.
AMP Solar acquired
a 49 percent stake in Rudra Solarfarms, a special purpose vehicle (SPV) set up
by Suzlon for executing a 15 MW solar PV project in Telangana.
learn more about the report, visit: http://bit.ly/MercomSolarQ42016