Silicon Ranch Corporation, the US independent power producer, has raised $775 million in new equity funding. Silicon Ranch intends to use the funds to continue executing its business plan, which includes building out its contracted pipeline and accelerating its customer-led growth strategy by developing new projects, entering new markets, and pursuing strategic acquisition opportunities.
Manulife Investment Management led the round with a $400 million commitment on behalf of Manulife Infrastructure Fund II and John Hancock, marking the firm’s first investment in Silicon Ranch. Existing shareholders of the solar developer, including Shell, TD Greystone Infrastructure Fund (Global Master) L.P., and Mountain Group Partners, have joined Manulife Investment Management in the round. The transaction is expected to complete in the first quarter of 2022, subject to regulatory approvals.
In December 2020, Silicon Ranch Corporation finalised an investment round with $225 million in new equity capital. The proceeds from this funding round were to be used to develop 1 GW or more of solar power capacity in the coming two years. Existing shareholders of Silicon Ranch funded this round. These shareholders include Shell and institutional investors TD Greystone Infrastructure Fund (Global Master) L.P., managed by TD Asset Management Inc., and Mountain Group Partners.
REGlobal’s Views: Equity financing continues to be a leading form of raising funds in the renewable energy space as large investors acquire big stakes in clean energy firms due to the attractive economic prospects of renewable power projects, slump in growth of thermal power projects and also to green their portfolios.
