Corporate funding to solar sector dips to $1.7 bn in April-June

Kolkata, July 11 (IANS) Global consulting firm Mercom Capital Group on Monday said total corporate funding, including venture capital funding, public market and debt financing into the solar sector fell to $1.7 billion in April-June quarter, a 41 percent drop compared to the $2.8 billion raised in January-March period.

Year-over-year total corporate funding was down significantly compared to $5.9 billion in the second quarter of last year, the firm said.

“The solar industry continues to experience weakness in terms of financing activity and corporate funding in April-June, 2016 was at its lowest level in three years,” said Group’s CEO and co-founder Raj Prabhu.

Global solar venture capital funding (including private equity) saw a large decline in the quarter under review with $174 million in 16 deals compared to $406 million in 23 deals in January-March period.

According to the firm, solar downstream companies raised the most (64 percent) VC funding in April-June 2016 with $112 million in seven deals.

Solar public market financing in April-June came to $179 million in four deals compared to $94 million in four deals in the first quarter of calendar year 2016 and $2.3 billion in 12 deals in April-June period last year, the report said.

The firm said the announced debt financing came to $1.3 billion in 12 deals in April-June period compared to $3.4 billion in 14 deals in the corresponding period last year.



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