RWE Leads $45 Million Round of Equity Financing for Conergy

(Bloomberg) — RWE AG, Europe’s largest air polluter, is

expanding its efforts in clean energy by leading a $45 million

equity financing round for Conergy, a closely held solar

developer that’s considering an initial public offering within

two years.

RWE will own a minority stake after its investment,

Hamburg-based Conergy said in a statement Tuesday. Terms and

specific investment amounts weren’t disclosed for the round, and

RWE was joined by existing Conergy investors.

The move “is primarily a financial investment” to fund

Conergy’s international expansion and not a strategic one, RWE

spokeswoman Stephanie Moeller said by e-mail. The Essen,

Germany-based company’s Supply & Trading unit typically makes

investments in the energy industry with three- to five-year

timeframes.

RWE is Germany’s largest power generator and sees the solar

sector “a global growth market,” she said. The company has

been a partner in Spain’s Andasol 3 solar thermal power station

with an installed capacity of about 50 megawatts since 2011.

“This latest fund raise is important because we can expand

our global footprint,” Conergy’s Chief Executive Officer Andrew de Pass said in an e-mail Monday. Conergy is majority backed by

Kawa Capital Management, a Florida-based asset manager that in

2013 bought units of it after its parent company filed for

insolvency.

Global solar installations are expected to rise 23 percent

to 58 gigawatts this year, up from 47 gigawatts last year,

according to Bloomberg New Energy Finance.

Conergy may seek as much as $2 billion in an IPO, Katie

Ullmann, a spokeswoman, said Tuesday by e-mail. The company said

March 2 it expects to deploy about 450 megawatts of rooftop and

ground-mounted systems this year, 50 percent more than last

year.

To contact the reporter on this story:

Justin Doom in New York at

jdoom1@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Will Wade, Jim Efstathiou Jr.

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