Loanpal Closes Securitization of $474 Million of Residential Solar Loans
The securitization, the largest residential solar securitization to date, brings the total amount of securitized loans generated on the Loanpal technology platform to $1.4 billion since the beginning of 2020
SAN FRANCISCO, Jan. 7, 2021 /PRNewswire/ -- Loanpal, the nation's leader in point-of-sale sustainable home improvement financing, today announced that Loanpal Solar Loan 2021-1 Ltd. and Loanpal Solar Loan 2021-1 LLC ("LPSLT 2021-1") have closed a securitization of approximately $474 million worth of Loanpal solar loans previously purchased by Goldman Sachs Lending Partners LLC, Blackstone Credit, Davidson Kempner Capital Management LP, funds managed by CarVal Investors, Credigy and GoodFinch. This transaction confirms the increased demand in the marketplace for high-quality ESG assets and represents the fourth securitization since the beginning 2020 for loans generated on the Loanpal platform, totaling over $1.4 billion during this time period.
"We're excited to begin 2021 with another record-breaking residential solar loan securitization and are looking forward to our continued growth this year across the entire $100+ billion sustainable home improvement market," said Loanpal President and Chief Investment Officer Tanguy Serra. "Investor demand is incredibly strong for these high-quality assets as the combination of excellent payment performance and attractive yields are driving new buyers into the clean-energy marketplace."
Loanpal leverages its deep expertise in technology, data and lending to make sustainable home improvement products more accessible for homeowners who are looking to have a positive impact on the planet. Loanpal's proprietary technology platform is accessed by more than 12,000 sales professionals at the point-of-sale, creating a highly efficient, super-prime channel for financial institutions to deploy their capital in ESG assets. Loanpal works with credit unions, insurance companies, banks and asset managers and has provided approximately $5 billion of solar loans and other home efficiency loans through its platform since 2018, empowering over 175,000 families to date to take steps that reduce their carbon footprint.
This securitization, sponsored by Goldman Sachs, consists of over $430 million of notes, of which $390 million are rated by Kroll Bond Rating Agency. The notes are modeled to a weighted average life of approximately 5.44 years, 6.48 years and 6.95 years for the Class A Notes, Class B Notes and Class C Notes, respectively, and are backed by an initial collateral pool of approximately $474 million of loans with an average FICO score of 742.
"As homeowners continue to adopt clean-energy products, access to efficient capital is central to supporting growth in the market. Loanpal continues to be a leader in the sustainable home improvement market and we are excited to be part of a transaction that will help evolve the financing of residential solar products," said Katrina Niehaus, Managing Director at Goldman Sachs.
Loanpal is the nation's leading technology platform for the $100+ billion sustainable home improvement market. 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's technology is utilized by over 12,000 sales professionals to deploy approximately $400 million a month in solar and other sustainable home improvement products. Loanpal has transacted over $5 billion on its platform since its launch in 2018. Loanpal is a proud partner of GivePower, a 501(c)(3) 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.