Mercom Solar Q1 2018 Funding and M&A Fact Sheet

15 May 2018

MERCOM CAPITAL GROUP

Total Corporate Funding (includes VC funding, debt financing and public market financing) Q1 2018 - $2 billion in 43 deals 

Q4 2017 - $5.7 billion in 63 deals Q3 2017 - $2.4 billion in 45 deals Q2 2017 - $1.4 billion in 37 deals Q1 2017 - $3.2 billion in 60 deals 

VC Funding 

Q1 2018 - $161 million in 22 deals 

Q4 2017 - $639 million in 30 deals 

Q3 2017 - $269 million in 23 deals 

Q2 2017 - $128 million in 23 deals 

Q1 2017 - $588 million in 23 deals 

Q4 2016 - $329 million in 22 deals 

Top VC Funded Companies in Q1 2018 

  • • $55 million raised by Off grid Electric from Helios Investment Partners, GE Ventures 
  • d.light design raised $25 million from European Investment Bank 
  • • $23 million secured by Solaria from Presidio Partners, Kline Hill Partners, Structural Capital, 
  • Renewable Properties raised $12.5 million from New Energy Capital Partners 
  • Kiran Energy raised $11 million from Bessemer Venture Partners, Argonaut Ventures, New Silk Route 
  • M-KOPA (an asset financing company) secured $10 million from FinDev Canada, CDC Group 

Q1 208 VC Funding by Technology 

  • Solar Downstream: $125 million in 18 deals 
  • Solar PV: $33 million in 2 deals 
  • Balance of System (BOS): $1 million in 1 deal 
  • Solar CPV: $2 million in 1 deal 

Debt Financing 

Q1 2018 - $1.7 billion in 17 deals 

Q4 2017 - $4.4 million in 23 deals

Q3 2017 - $2.1 million in 18 deals 

Q2 2017 - $798 million in 8 deals 

Q1 2017 - $2.2 billion in 25 deals 

Q4 2016 - $610 million in 10 deals 

Public Market Financing 

Q1 2018 - $103 million in 4 deals 

Q4 2017 - $657 million in 10 deals 

Q3 2017 - $79 million in 4 deals 

Q2 2017 - $473 million in 6 deals 

Q1 2017 - $461 million in 13 deals 

Announced Large-Scale Project Funding 

Q1 2018 - $2.7 billion in 57 deals 

Q4 2017 - $3.7 billion in 49 deals 

Q3 2017 - $2.8 billion in 36 deals 

Q2 2017 - $4.8 billion in 48 deals 

Q1 2017 - $2.6 billion in 33 deals 

Top Large-Scale Project Funding Deals in Q4 2017 by Dollar Amount 

  • Coronal Energy raised $235 million in tax equity and debt for its 120 MW Gulf Coast Solar Center portfolio from Marathon Capital, U.S. Bankcorp Community Development Corporation (USBCDC), and Sumitomo Mitsui Banking Corporation (SMBC). 
  • ACWA Power, secured $190 million for three solar PV projects totaling 165.5 MW, of which 75 percent was financed through non-recourse project debt from the European Bank for Reconstruction and Development (EBRD) and the Industrial and Commercial Bank of China (ICBC). 
  • Masdar received $188 million in financing for its 248 MW Baynouna solar project in Jordan. The International Finance Corporation (IFC) invested $54 million while Japan International Cooperation Agency, the Dutch Development Bank FMO, Europe Arab Bank, OPEC Fund for International Development (OFID), and German development bank DEG brought in the remaining $134 million. 
  • Equis Energy secured $156 million for its 127 MW Tailem Bend solar project in South Australia. 
  • Vector Green Energy, a subsidiary of IDFC Limited, received $156 million in refinancing for two solar projects with 223 MW of combined capacity in Telangana, India, from IndusInd Bank, L&T Infra Debt Fund, IIB and L&T Finance

Residential/Commercial Solar Project Funds (aka third-party financing/lease/loan) 

Q1 2018 - $400 million in 1 deal 

Q4 2017 - $213 million in 3 deals 

Q3 2017 - $400 million in 3 deals Q2 2017 - $1.2 billion in 4 deals 

Q1 2017 - $630 million in 6 deals 

Corporate M&A Transactions 

Q1 2018 - $8.3 billion in 19 transactions (5 disclosed) 

Q4 2017 - $1.5 billion in 13 transactions (5 disclosed) Q3 2017 - $386 million in 18 transactions (6 disclosed) Q2 2017 - $507 million in 11 transactions (4 disclosed) 

Q1 2017 - $4.7 billion in 29 transactions (10 disclosed) 

Top M&A Transactions in Q1 2018 

  • Global Infrastructure Partners (GIP) acquired a 100 percent stake in Equis Energy, a renewable energy project developer, from Equis for $5 billion. 
  • Capital Dynamics acquired 8point3 Energy Partners, a joint-venture yieldco of First Solar and SunPower, for $1.7 billion in enterprise value. 
  • Global Infrastructure Partners (GIP) acquired power generation and distribution company NRG Energy’s ownership in NRG Yield and NRG’s U.S. renewables platform for $1.375 billion.. 
  • Shell acquired a 43.83 percent stake in Silicon Ranch, a developer, owner, and operator of solar projects in the U.S., for $217 million. 
  • Reich Brothers Holdings acquired multinational conglomerate Panasonic's solar module manufacturing plant in Salem, Oregon, for $7.7 million. 

Announced Large-Scale Project Acquisitions Q1 2018 - $1.9 billion in 80 transactions 

Q4 2017 - $3.7 billion in 67 transactions Q3 2017 - $1.1 billion in 60 transactions Q2 2017 - $1.6 billion in 52 transactions Q1 2017 - $1.9 billion in 49 transactions Q4 2016 - $2.1 billion in 73 transactions Q1 2018 SOLAR FUNDING and M&A FACT SHEET 

Mercom Capital Group, llc • tel: 1.512.215.4452 • email: info@mercomcapital.com Disclaimer: When quoting, please cite “Mercom Capital Group, llc”. Although information in this report has been obtained from sources that we believe to be reliable, Mercom Capital Group does not guarantee its accuracy and is not liable for its use. Copyright © 2018 Mercom Capital Group, llc, All rights reserved. 

Top 5 Project Acquisitions by Dollar Amount in Q1 2018 

  • ContourGlobal acquired five solar thermal projects in Spain with a combined capacity of 250 MW from Acciona (a Spanish conglomerate and renewable energy project developer) for ~$1.34 billion. 
  • BayWa acquired a 70 percent stake in a solar project pipeline of around 2 GW from the consortium GroenLeven Group for approximately ~$197.5 million. 
  • China Smarter Energy Group acquired the special purpose vehicle (SPV) Ningxia Guxin Electricity Investment Company which owns a 300 MW solar project for ~$134.3 million. It was acquired from joint holders Shanghai Guxin Asset Management (70%) and Shandong Runfeng Group (30%). 
  • New Energy Solar acquired a 49 percent stake in the Boulder Solar I project (an operational 125 MW project in Clarke County, Nevada) from SunPower for $55 million. 
  • Renewable Japan Energy Infrastructure Fund acquired nine solar projects totaling 14 MW in Japan for ~$54.8 million. 

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