Solar module manufacturer SWELECT Energy Systems has proposed raising ₹1.38 billion (~$16.22 million) by issuing 1,385 non-convertible debentures (NCDs) with a face value of ₹1 million (~$11,757) each through private placement.

These secured, unlisted, rated, redeemable, non-cumulative, taxable NCDs will have a tenure of 12.5 years and a 9.5% average interest rate.

The funds will strengthen the company’s finances.

The company board has also approved the conversion of ₹400 million (~$4.7 million) in loans into 4 million preference shares at ₹100 (~$1.18) each for its wholly owned subsidiary, SWELECT HHV Solar Photovoltaics.

The company plans to incorporate four wholly owned subsidiaries— SWELECT Sunpower Plus, SWELECT Solarkraft, SWELECT GP, and SWELECT SE — to develop solar power projects. Each subsidiary will be established with an initial paid-up capital of ₹100,000 (~$1,175).

In October, Swelect HHV Solar, with an enlisted capacity of 627 MW, was added to the provisional Approved List of Models and Manufacturers with an applied capacity of 700 MW.

Swelect Energy Systems was among the winners of Solar Energy Corporation of India’s auction to manufacture, test, package, forward, supply, and transport 400 MW domestically manufactured solar modules. Swelect was awarded 100 MW capacity at an evaluated bid value of ₹ 22.66 (~$0.272)/Wp.

Total corporate funding, including venture capital), public market activity, and debt financing for the solar sector, reached $22.3 billion in the first nine months (9M) of 2024, a 23% decrease from the $28.9 billion raised during the same period in 2023.

The number of deals also dropped by 6%, with 117 deals in 9M 2024 compared to 124 in the same period in 2023, according to the recently released report 9M and Q3 2024 Solar Funding and M&A Report by Mercom Capital Group.