Global Corp Funding In 9M/2019 Improved 34% YoY

Mercom Capital Group: With $3 Billion Raised In Q3/2019, Global Corporate Funding During 9M/2019 Increased 34% YoY To $9 Billion
07:44 AM (Beijing Time) - 14. October 2019
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Even though the solar industry hasn’t been able to match the total corporate funding level secured in 9M/2015, according to Mercom Capital Group, the 34% YoY increase in 9M/2019 is definitely a very positive development, hinting at strong demand and solar public companies that are doing well. (Source: Mercom Capital Group)

Key Takeaways

  • Mercom Capital counts $9 billion having been raised in 9M/2019 as total global corporate funding, compared to $6.7 billion raised a year back
  • Debt financing was the biggest contributor to this with $5.8 billion, followed by $2.25 billion in public market financing and finally $1 billion coming in as VC funding
  • Major highlights during the period were five IPOs and securitization deals bringing in over a billion dollars

The solar industry seems to be doing well, attracting investors globally, which shows the technology is gaining credibility among the lot. During the first nine months of 2019, total corporate funding increased 34% YoY to $9 billion, compared to $6.7 billion reported a year back (see PV Secured $6.7Bn Corp Funding In 9M/2018).

Mercom Capital Group’s latest report 9M and Q3/2019 Solar Funding and M&A Report counts venture capital (VC), private equity (PE), public market and debt financing to add up to total corporate funding. The CEO of the market intelligence firm Raj Prabhu said the demand outlook looks positive. Out of $3 billion raised in Q3/2019, more than $100 million in venture funding was grabbed by technology and manufacturing-focused companies, a rarity according to Prabhu while another highlight was five initial public offerings (IPO) and over a billion dollars in securitization deals so far.

VC funding

Overall, global VC funding of $1 billion was an improvement of 13% annually in 9M/2019 with the top VC deal so far being $300 million raised by India’s ReNew Power, followed by $144.3 million raised by another Indian company Avaada Energy as equity and $65 million secured by Dubai’s Yellow Door Energy. Mercom counted 88 VC investors as having participated in solar funding during the first three quarters of 2019.

Public market financing

Also public market financing for the global solar sector saw a 25% YoY increase during the reporting period, raising $2.25 billion in 13 deals. Of this, $1.3 billion in five deals punched in Q3/2019 thanks to two IPOs. In 9M/2019, a total of five IPOs raised $1.3 billion.

Debt financing

There was a 43% rise over last year in announced debt financing deals adding up to a total of $5.8 billion in 37 deals. Six solar securitization deals of $1 billion in 9M/2019 take the total amount raised through such deals since 2013 to $4.7 billion.

Powertis winning $613 million from BNDES and BNB for a 765 MW PV portfolio in Brazil was the top most project funding deal in Q3/2019, as Mercom says 60 investors provided funds for large scale project development in Q3/2019.

As for a total of 57 solar M&A transactions out of which only 10 were disclosed in 9M/2019, 20 took place in the third quarter of the year with downstream companies hogging it all in Q3/2019.

Compared to 23.6 GW projects changing hands in 9M/2018, only 15.9 GW of solar projects were acquired this year; 4.3 GW were transacted in Q3/2019. As per the report, project developers acquired 2.2 GW of solar capacity in Q3/2019 followed by investment firms and funds, and finally utilities and independent power producers (IPP).

The report can be purchased at Mercom Capital’s website with prices starting from $299.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani