Renew Financial’s $223M ABS Securitization Receives Highest Green Bond Rating
Renew Financial’s first ABS transaction of 2017 is secured by Property Assessed Clean Energy (PACE) projects that provide energy-efficiency, renewable energy and hurricane-mitigation benefits to more than 5000 homeowners in California and Florida
OAKLAND, Calif., April 28, 2017 -- Renew Financial, a leading clean energy finance company, today announced it has completed its first 2017 ABS securitization of residential PACE bonds. The securitization is supported by PACE assessments originated in partnership with Los Angeles County, the California Statewide Community Development Authority and the Florida Green Finance Authority. Moody’s Investors Service assigned a Green Bond Assessment of GB1 (Excellent) to both tranches of notes included in the $223M transaction. $189.1M of Class A notes were rated AA(sf) by Kroll and DBRS, and $34.1M of Class B notes were rated BBB(sf) by DBRS. The securitization was structured and placed by Natixis Securities Americas LLC, a U.S.-registered broker-dealer and subsidiary of Natixis.
“Renew Financial’s latest capital markets transaction represents everything that is great about PACE: securitized PACE bonds provide strong financial returns for investors, and the local PACE programs that make those bonds possible create good-paying local jobs and help families live more comfortably and securely,” said Kirk Inglis, CFO of Renew Financial. “Coming on the heels of Renew Financial expanding its CaliforniaFIRST PACE program to 14 new jurisdictions in Riverside County, CA, this highly rated securitization is further evidence of Renew Financial’s accelerating growth.”
“Natixis is dedicated to supporting clients at the heart of the rapidly expanding green economy,” said Kevin Alexander, Managing Director, Head of Global Markets and Investment Banking Americas at Natixis. “Natixis continues to be a leader in Green Bonds, so working with a reputable and established PACE provider like Renew Financial is a natural choice. We are proud to partner with Renew Financial on its Green Bond platform, and we are looking forward to continued success with Renew’s future PACE ABS securitizations.”
About Renew Financial
Renew Financial is one of the nation's leading clean energy financing companies. Founded in 2008 by former White House appointee and U.S. Department of Energy official Cisco DeVries, who originated the concept of Property Assessed Clean Energy (PACE), Renew Financial now provides multiple financing products across the country. PACE enables property owners to finance the entire cost of efficiency, resilience and renewable energy upgrades to their homes and businesses, and then repay those costs on their property tax bill. Named by Scientific American as one of the "top 20 ideas that can change the world," PACE received favorable regulatory guidance from the Federal Housing Administration (FHA) in July 2016. Renew Financial's other financing products include residential unsecured loans (ReHome), utility on-bill financing, and others. Renew Financial partners with Rainforest Trust to preserve endangered rainforests with a donation made for every completed project.
Renew Financial is a pending trademark of Renew Financial Holdings Inc. The Renew Financial CaliforniaFIRST financing program is sponsored by the California Statewide Communities Development Authority, Los Angeles County and Western Riverside Council of Governments. The RenewPACE financing program is sponsored by the Florida Green Finance Authority. Both programs are administered by Renew Financial Group LLC.
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Natixis is the international corporate, asset management, insurance and financial services arm of Groupe BPCE, the 2nd-largest banking group in France with 31.2 million clients spread over two retail banking networks, Banque Populaire and Caisse d’Epargne.
With more than 16,000 employees, Natixis has a number of areas of expertise that are organized into three main business lines: Corporate & Investment Banking, Investment Solutions & Insurance, and Specialized Financial Services.
A global player, Natixis has its own client base of companies, financial institutions and institutional investors as well as the client base of individuals, professionals and small and medium-size businesses of Groupe BPCE’s banking networks.
Figures as of December 31, 2016