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Tesla acquisition target SolarCity raises $345 million to fund projects

A SolarCity vehicle is seen on the road in San Diego, California, U.S. June 22, 2016. REUTERS/Mike Blake

(Reuters) - SolarCity Corp (SCTY.O), which received a takeover bid from Elon Musk's Tesla Motors in June, said it has raised $345 million in tax equity and also increased its debt facility by $110 million to $760 million.

The company said it raised the funds from four separate partners in June and July to cover the capital cost of new equipment and installations, and make it possible for customers to pay less for solar power than they pay for utility power.

San Mateo-based Solar City had raised $728 million in financing, partly through tax equity, during the first quarter.

SolarCity said on Monday that $70 million of the $110 million increase in its existing debt facility was due to the addition of two new lenders.

(Reporting by Vishaka George in Bengaluru; Editing by Savio D'Souza)