Indian solar sector scored $1.1b in funding, M&A deals in 4Q16

IPP Azure Power raised $61.6m in an IPO.

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 Enterprises.

Here's more from Mercom Capital Group:

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 financing round.

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 acquisition 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.