Monday 16 December 2013, Amsterdam
Asset Financing Investments Decreased In The Power Industry In Q3 2013
Asset financing, including project financing, self-funded, tax equity, lease and bond financing, and bridge loans for new builds, acquisitions and the refinancing of assets reported a decrease in deal value with US$39.5 billion in Q3 2013, as compared to US$45.6 billion in Q2 2013. However, the number of deals reported an increase with 298 deals in Q3 2013, as compared to 242 deals in Q2 2013. On a year-on-year basis, asset financing recorded an increase in the number of deals and decrease in deal value from 206 deals worth US$54 billion in Q3 2012.
The deal value in fossil fuel market decreased substantially to US$3.9 billion in Q3 2013 from US$9.2 billion in Q2 2013. The number of deals also decreased to 11 in Q3 2013 from 20 deals in Q2 2013.
The solar and wind segments registered an increase in the number of deals and a decrease in investments with 86 deals worth US$5.2 billion and 73 deals worth US$6.2 billion in Q3 2013, as compared to 70 deals worth US$10 billion and 70 deals worth US$8.3 billion respectively in Q2 2013.
Grupo Romero Polo announcing an investment of US$2.6 billion in a hydro power plant in Catalonia, Spain; Rock Island Clean Line announcing an investment of US$2 billion in O'Brien to Illinois transmission line in US, and Ameren Transmission announcing an investment of US$1.4 billion in Palmyra-Terre Haute transmission line in US, are some of the high value asset financing deals reported in Q3 2013.
M&A Activity Decreased In Q3 2013
M&As, which include change in ownership and control of companies in the power industry registered a decrease of 6% in number and 1% in value with 153 deals worth US$26.8 billion in Q3 2013, as compared to 162 deals worth US$27 billion in Q2 2013. On year-on-year basis, M&As recorded an increase in the number of deals and deal value from 140 deals worth US$12.5 billion in Q3 2012.
The number of M&A deals was the highest in the solar and wind segments with 52 deals and 32 deals, respectively, in Q3 2013, followed by energy efficiency and hydro segments with 16 and 14 deals respectively. In deal value, solar segment reported the highest deal value of US$10.8 billion in Q3 2013, followed by energy efficiency segment with US$7.9 billion.
North America accounted for 38% of the total number of deals and 40% total deal value in Q3 2013, followed by Europe with 30% of the number deals and 35% of total deal value
Capital Raising Through Issuance Of Equity Reported Increase In Q3 2013
Equity offerings, including IPOs, secondary offerings, and PIPEs, registered a marginal increase in the number of deals and deal value with 135 deals worth US$24.9 billion in Q3 2013, as compared to 134 deals worth US$11.8 billion in Q2 2013. On year-on-year basis, in equity offerings, the number of deals decreased from 142 deals and the deal value increased from US$7.2 billion in Q3 2012. IPOs in the power industry reported an increase in number and deal value with nine deals worth US$2.7 billion in Q3 2013, as compared to six deals worth US$2 billion in Q2 2013. Besides, 32 secondary offerings worth US$4 billion and 94 PIPE deals worth US$18.2 billion were reported in Q3 2013.
Capital raising, through issuance of debt instruments, including public debt offerings and private debt placements, registered a decrease in the number of deals and deal value with 88 deals worth US$34 billion in Q3 2013, as compared to 124 deals worth US$59.1 billion in Q2 2013. On a year-on-year basis, debt offerings recorded a decrease in the number of deals and deal value from 163 deals worth US$84.6 billion in Q3 2012.
Venture Capital Investments Decreased In Q3 2013
Venture capital financing in the power industry registered a decrease in the number of deals and deal values in Q3 2013 with 55 deals worth US$430m, as compared to 88 deals worth US$1.1 billon in Q2 2013. On year-on-year basis, venture financing deals recorded a decrease in the number of deals and deal value from 77 deals worth US$922.8m in Q3 2012.
International Finance Corporation, Khosla Ventures, Draper Fisher Jurvetson, VantagePoint Capital Partners and Kleiner Perkins Caufield & Byers each made investment in five deals worth US$179.4, US$145.4m, US$133.3m, US$129.6m and US$118m, respectively, between Q3 2012 and Q3 2013.
Deals In North America Increased In Q3 2013
North America registered an increase in the number of deals and a marginal decrease in deal value with 391 deals worth US$46.4 billion in Q3 2013, as compared to 328 deals worth US$46.7 billion in Q2 2013. On a year-on-year basis, the number of deals and deal values registered an increase from 343 deals worth US$44 billion in Q3 2012.
Europe registered a decrease in deal value from US$58.3 billion in Q2 2013 to US$43.7 billion in Q3 2013. The number of deals also registered a decrease to 247 in Q3 2013 from 268 in Q2 2013. On a year-on-year basis, the number of deals registered an increase and deal value decreased from 210 deals worth US$51.9 billion in Q3 2012.
Asia-Pacific registered a decrease in the number of deals and deal value with 242 deals worth US$31.2 billion in Q3 2013, as compared to 245 deals worth US$32.6 billion in Q2 2013. On a year-on-year basis, the region registered a decrease in the number of deals and deal value in Q3 2013, as compared to 246 deals worth US$49.8 billion in Q3 2012.
