Total corporate funding in the solar sector globally, including venture capital (VC), private equity (PE), debt financing, and other equity financings raised by public companies, for Q1 2014 came in at $7 billion, compared to $5 billion in Q4 2013, according to Mercom Capital Group.
According to Raj Prabhu, CEO of Mercom Capital Group, solar financing activity surged in almost all areas. VC funding was up with several funding deals involving investment “platforms,” while third-party residential/commercial funds continue to raise record amounts.
Solar sector attracted $5.3 billion debt financing in 13 deals in the first quarter 2014. The largest deal was the $3.3 billion credit line Hanergy Holding Group, a Chinese renewable energy producer and thin film module manufacturer, received from China Minsheng Banking Corporation and the Asia Financial Cooperation Association.
GCL-Poly Energy, a polysilicon and wafer producer, raised $813 million in a credit facility from the China Development Bank. JinkoSolar, a vertically-integrated solar manufacturer, secured a total of $644 million in debt, including a credit line of $494 million from the China Development Bank and $150 million in convertible senior notes. juwi renewable IPP, a renewable energy project developer, secured $205 million in debt from Gothaer Versicherungsbank. Canadian Solar, a verticallyintegrated solar manufacturer, raised $150 million in convertible senior notes.
Loans, credit facilities, strategic financings, and framework agreements involving Chinese state banks to Chinese solar companies in Q1 2014 totaled $1.3 billion in two deals. Loans, credit facilities and other types of debt agreements from Chinese banks to Chinese solar companies now stand at approximately $58 billion.