New Delhi: Globally the solar sector attracted total funding of over USD 1,454 million (Rs 7,647 crore) through 39 deals, including three Indian transactions during the September quarter this year, says a report.

According to the Mercom Capital Group's third quarter funding and M&A activity report for solar sector, the third quarter of this year saw total funding worth USD 1,454 million through 39 deals as against USD 3,305 million by way of 64 transactions in the year-ago period.

The report analysed funding on the basis of four categories including project funding, VC funding, debt funding and others.

All the three Indian deals -- Welspun Energy getting Rs 355 crore loan from a consortium of lenders, Mahindra Suryaprakash and Solar Field Energy securing funding from The Export-Import Bank of the United States -- were listed in the project funding category.

Welspun Energy, secured the funding for a 50 MW solar PV project in Rajasthan. While, Mahindra Suryaprakash, secured a loan of Rs 188 crore to construct two solar photovoltaic plants of 20 MW and 10 MW, in Rajasthan.

Solar Field Energy Two, secured a Rs 126 crore loan to construct a 20 MW solar photovoltaic plant in Rajasthan.

The report further said that global venture capital funding dropped below the USD 100-million mark for the first time since 2008 amid challenging market scenario.

"This was the first sub-USD 100 million quarter for solar VC funding since 2008. It is a very challenging market, particularly for upstream companies - good exits have become rare and M&A deals are more and more resembling distress sales," Mercom Capital Group Managing Partner Raj Prabhu said.

Venture capital funding in the solar sector in the July-September quarter was down to its lowest levels since 2008, totalling just USD 72 million through 14 deals compared to USD 376 million in 32 deals in the second quarter of 2012.

Meanwhile, the M&A activity in the solar sector totaled USD 393 million in 12 deals, with only four transactions disclosing amounts, the report said.

A notable transaction this quarter was the acquisition of Vivint by Blackstone Group for USD 2 billion, it said.

(Agencies)

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