SolarCity Corp Secures $345M To Fund New Projects

SolarCity Corp Secures $345M To Fund New Projects
By BrokenSphere (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

SolarCity has revealed that it has raised hundreds of millions of dollars in tax equity and debt financing over the past few weeks. This new financing will be used to build fresh solar panel projects. This revelation comes a month after Tesla expressed its intention to buy the solar company for $2.86 billion.

Sending a positive message to Wall Street

On Monday, SolarCity revealed that it raised its tax equity by $345 million and increased its debt aggregation facility by $110 million. This brings the company’s total project financing to $1.5 billion in 2016. The solar firm states that it has collaborated with 30 different banks and corporate partners on the project financing. The core message that this delivers to Wall Street is that the company is in good financial health and currently has funds to maintain its growth, despite the uncertainty with the Tesla deal and slower projected growth this year.

Several analysts see Tesla’s plan of buying SolarCity as a potential bailout. The solar firm already had around $3.25 billion in debt and $1.23 billion in debt payments due by the end of 2017 when Tesla’s deal was announced. The company plans to build its own solar panels, an expensive and risky move, so it is putting more investments into a large solar factory in upstate New York.

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