The cost of raising equity capital is on the rise for companies in need of cash, demonstrated by German solar company Conergy carrying out a massively discounted rights issue last week despite investor enthusiasm for the renewable energy sector. Conergy needs money to repay loans that expire at the end of this year.

Conergy announced last Friday that it would offer new shares at a 78% discount in a rights issue, fully underwritten by Credit Suisse and Dresdner Kleinwort, which is aimed at raising €400m ($506m).