Loanpal closes largest residential solar securitization to date
Goldman Sachs sponsored the securitization of approximately $434 million of loans originated on the Loanpal platform and previously purchased by Goldman Sachs, Blackstone Credit and GoodFinch. This transaction marks the largest residential solar loan securitization completed in the solar industry
Nov 23, 2020, 11:46 ET
SAN FRANCISCO, Nov. 23, 2020 /PRNewswire/ -- Loanpal, the nation's leader in residential solar financing, today announced that Loanpal Solar Loan 2020-3 Ltd. closed a securitization of approximately $434 million worth of Loanpal solar loans previously purchased by Goldman Sachs, Blackstone Credit and Goodfinch. This represents the largest securitization of residential solar loans to date and reaffirms Loanpal's high quality assets and strength in the marketplace. Renewable energy is forecasted to be the fastest-growing source of electricity generation in 2020, underscoring the sector's resilience in a year of unprecedented economic disruption.
Loanpal leverages its deep expertise in technology, data and lending to make sustainable home improvement products more accessible for homeowners, and to give financial institutions and home improvement contractors the confidence to finance those products and help combat climate change. Loanpal works with credit unions, insurance companies, banks and asset managers to provide $400 million of loans through its technology platform per month, allowing 10,000 families to reduce their carbon footprint and live a more sustainable life. Since 2018, the Company has transacted over $5 billion in solar loans on its technology platform.
"The market for sustainable home improvement products is estimated to be worth more than $100 billion in 2021. Access to efficient financing for those products will be a key driver for the sector and the clean energy industry overall," said Loanpal President and Chief Investment Officer Tanguy Serra. "We're thrilled to continue our incredible relationship with Goldman Sachs and Blackstone Credit who support Loanpal's mission and deeply understand the solar loan asset class."
This securitization, sponsored by Goldman Sachs consists of $346.7 million of notes rated by Kroll Bond Rating Agency. The notes are modeled to a weighted average life of approximately 5.69 years, 7.23 years and 7.84 years for the Class A's, B's and C's respectively, and are backed by an initial collateral pool of approximately $434 million of loans with an average FICO score of 744.
"Efficient and innovative financing of renewable energy sources is part of our core offering. Having played a strategic role in Loanpal's securitization program since inception, we look forward to seeing how this transaction sets the precedent for future activity," said Katrina Niehaus, Managing Director at Goldman Sachs.
Loanpal is the nation's leading technology platform for residential solar loans. The company is committed to delivering a tech-enabled lending experience that is simple, fast and frictionless, resulting in instant approvals at the point of sale. Loanpal is deploying $400 million a month in solar and other sustainable home improvement products and has transacted over $5 billion on its platform since its launch in 2018. Loanpal's platform connects financial institutions to high-quality borrowers for products that make a positive impact on the planet. Loanpal is a proud partner of GivePower, a 5013c corporation, whose mission is to build and deploy solar-powered clean water and energy systems to communities in need around the world. To learn more about Loanpal, visit, follow and connect with us at www.loanpal.com, @loanpal, and Linkedin.
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