With solar installations crossing 12
GW by end of March 2017, financial activity was robust in the first quarter
of 2017, with approximately $1.6 billion (~Rs.106 billion) in announced
corporate, project funding and M&A deals, according to the recently released
Q1 2017 Solar Funding and M&A
Report by Mercom Capital Group.
ReNew Power, an India-based renewable energy project
developer, secured $200
million (~Rs.12.9 billion) in funding from JERA (a joint venture between
Tokyo Electric Power and Chubu Electric Power, two of Japan’s largest utility companies) for a 10
percent stake in the company.
Greenko Energy Holdings, an owner and operator of renewable
energy projects, signed definitive agreements for an equity raise of $155
million (~Rs.10 billion) from an affiliate of GIC and an entity that is
ultimately wholly-owned by the Abu Dhabi Investment Authority (ADIA).
Hero Future Energies, the renewable energy subsidiary of
Hero Group, secured $125
million (~Rs.8.1 billion) in equity investment from the International
Finance Corporation (IFC).
Oriano Solar, a provider of EPC services for solar projects
in India, raised $3.1
million (~Rs.200 million) from Small Industries Development Bank of India's
Samridhi Fund to expand its team and finance working capital requirements.
In Q1 2017, ReNew Power raised $475 million (Rs.30.7
billion) through the sale of green energy bonds to overseas investors. Bank of
America Merrill Lynch, JP Morgan, and HSBC were some of the bankers involved in
arranging the deal.
Welspun Renewables Energy (WREPL), a renewable energy
project developer acquired by Tata Power (an electric utility company), raised
approximately $176.3 million (~Rs.12 billion) through issuance of non-convertible
debentures on a private placement basis.
Approximately $490.4 million (~Rs.32 billion) in project funding
was announced in Q1 2017. This
is slightly higher than the project funding announced in Q4 2016, which
was $369 million (~Rs.25 billion). ReNew Power secured a $390
million (Rs.25.2 billion)
financing package from the Asian Development Bank (ADB) for the development of
renewable energy projects in India. Solairedirect, a French solar project
developer, through its special purpose vehicle - Solaire Surya Urja - secured a
~$100.4 million (~Rs.6.75 billion) loan from
IDFC for the construction of two solar projects totaling 140 MW at the Bhadla
Solar Park in Rajasthan.
India Power Green Utility Private Limited (IPGUPL), a wholly
owned subsidiary of India Power Corporation Limited, acquired a 49
percent stakes in PL Sunrays Power and PL Renewable, a wholly owned
subsidiaries of Punj Lloyd, at an undisclosed amount.
were two new renewable energy and solar-focused funds in Q1 2017 which totaled
$313 million (~Rs.20.3 billion).The European
Investment Bank (EIB) approved a EUR200 million
(~Rs.13.8 billion), 20-year loan to the State Bank of India (SBI) which will
be utilized to help develop large scale solar projects in India. The World Bank
has approved $100 million
(~Rs.6.5 billion) to develop solar parks in India. This includes a $75
million (~Rs.4.8 billion) loan from International Bank for Reconstruction and
Development that will mature in 19 years and has a five-year grace period, a
$23 million (~Rs.1.5 million) loan from the Clean Technology Fund (CTF) which
has a 10-year grace period and a maturity of 40 years, and a $2 million
(~Rs.129 million) interest-free CTF grant. The Shared Infrastructure for the
solar parks project will establish large-scale solar parks in the country and
support the Government of India’s plans to install 100 gigawatts (GW) of solar
power by 2022.
learn more about the report, visit: http://bit.ly/MercomSolarQ12017