Funding and M&A Roundup: SolarEdge Technologies Raises $678.5 Million
Keppel Corporation to acquire the remaining stake in Cleantech Solar Asia for $115 million
From: Mercom Capital Group
SolarEdge Technologies, a provider of end-to-end solar power optimization and PV monitoring solutions, completed underwritten public offering of 2,300,000 shares of common stock at $295.00 per share, raising $678.5 million (before deduction for the underwriters’ discount and other offering expenses). This includes 300,000 shares sold to the underwriters upon exercising their option to purchase additional shares. Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley acted as joint book-running managers for the Common Stock offering. The company plans to use the net proceeds from the offering for general corporate purposes, including acquisitions.
Keppel Corporation, Keppel Asia Infrastructure Fund (KAIF), and a co-investor of KAIF announced the acquisition of the remaining 50% interest in Cleantech Solar Asia (CSA) for $115 million. The announcement is followed by the December 2021 acquisition by the partners of 51% stake in Cleantech Renewable Assets (CRA), which owns 50% of CSA. This will bring their collective effective stake in CSA, CRA’s asset company, from 25.5% to 75.5%, post-transaction. Completion of the acquisition of a 50% stake in CSA is subject to completion of the CRA Transaction and certain other customary conditions, including regulatory and other approvals. The transaction is expected to close in 1H 2022.
Cubico Sustainable Investments, a London-based renewables investor, secured $700 million to refinance the existing revolving facility, issue letters of credit, and finance its growth. The new financing comprises a $300 million revolving facility and a $400 million letter of credit facility, both with additional accordions of $200 million, an initial term of three years, and two one-year extension options. Paribas, CIBC, Credit Agricole, Export Development Canada, HSBC, ING, National Australia Bank, Scotiabank, and Societe Generale participated in the financing facility. National Australia Bank acted as facility agent and security agent.
Mitsui & Co., a global trading and investment company, part of the Mitsui Group, has agreed to invest €575 million (~$631.9 million) in Mainstream Renewable Power, a renewable energy project developer. Following the transaction, Mitsui will hold a 27.5% share in Mainstream, Aker Horizons will hold 54.4%, Mainstream’s founder, Eddie O’Connor, and Irish retail investors hold the remaining 18.1%. This transaction values Mainstream at approximately €2.1 billion (~$2.3 billion) on a 100% basis.
SPAN, a developer of a smart connected electrical panel, raised $90 million in a Series B funding round, bringing the company’s total funding to date to $134 million. Fifth Wall Climate Tech and Wellington Management led the funding round with other investors, including Angeleno Group, Robert Downey Jr.’s FootPrint Coalition, Van Jones’ Obsidian Investment Partners, A/O PropTech, and existing board investors. The company plans to use the fresh funding to develop its SPAN Home suite of energy products and solutions to drive commercial growth and accelerate the electrification of homes.
KORE Power, an integrated renewable energy provider, has acquired Northern Reliability (NRI), a provider of customized power and energy storage solutions for all applications, and launched KORE Solutions, a full-service storage integrator that will operate as a division of the U.S.-based battery manufacturer, allowing KORE Power to become a vertically integrated energy solutions provider.
The European Investment Bank (EIB) and Brazilian energy utility company Neoenergia signed a €200 million (~$220 million) loan to finance renewable energy projects in Brazil. The EIB loan will allow Neoenergia to build a wind project in Chafariz and a solar power project in Oitis, in the northeast region of Brazil. The new agreement will support a series of onshore wind projects, grouped into two clusters in the Brazilian states of Paraíba, Piauí, and Bahia, and a solar PV plant to be built in Paraíba approximately 10 km away from the wind cluster. The power generation capacity of the project is 715.5 MW, comprising 566.5 MW of wind power and 149 MW of solar project.
Berlin-based startup Zolar, a platform that serves as an online configurator for the planning and subsequent purchase of a rooftop PV system, received a $23 million investment from Ecosia. Ecosia’s injection of capital is aimed at intensely accelerating the adoption of purchasing or renting a PV system for as little as €54 (~$59.6)/month.
Scout Clean Energy, a renewable energy developer, owner, and operator, closed a $250 million revolving corporate credit facility. The company intends to use the facility to fund pre-construction development and equipment expenses, PPA security requirements, and other corporate expenses for its growing pipeline of wind, solar, and storage projects. The facility also offers an accordion feature that provides Scout with the potential flexibility to pursue additional opportunities in a well dynamic market. KeyBanc Capital Markets is acting as Mandated Lead Arranger.
Adani Green Energy has raised a $288 million (~₹3.79 million) financing facility by extending its construction financing framework to $1.64 billion (~₹21.6 million) for its under-construction renewable asset portfolio through agreements signed with leading lenders. The facility is expected to help finance 450 MW of hybrid solar and wind projects that the company is setting up in Rajasthan.
Sunfire, an electrolysis company that designs and manufactures systems for the production of renewable industrial gas and fuel, increased its Series D capital by €195 million ($215 million), partnering with Copenhagen Infrastructure Partners (CIP) and Blue Earth Capital (BlueEarth). The electrolysis company will benefit from the partnership by entering into a framework agreement with CIP for its alkaline electrolyzers alongside growth and climate impact expertise from BlueEarth. CIP invested in Sunfire through its Copenhagen Infrastructure Energy Transition Fund I.
SparkMeter, a provider of grid management services, equipment, and software solutions, announced a $10 million raise led by Accurant International with participation from existing investors, Breakthrough Energy Ventures and Clean Energy Ventures. This financing brings SparkMeter’s total financing to $22 million and will enable its growth in global markets. SparkMeter’s technology intends to help utilities address daily challenges from poor grid edge visibility, congestion, stress on lines and transformers, and plan for new grid dynamics such as DERs and EV chargers.
For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.
Read last week’s funding roundup.