Ygrene Closes Industry Record $340.5 Million ABS Transaction
Largest securitization in PACE history; first-ever PACE transaction rated by S&P and rated AA+ by Kroll
27 Apr, 2018, 08:00 ET
PETALUMA, Calif., April 27, 2018 /PRNewswire/ -- Ygrene, a national leader in energy efficiency and resiliency financing, today closed on a $340.5 million note rated AAA/AA+/AA by Morningstar/Kroll/S&P. The deal marks the largest securitization in property assessed clean energy (PACE) history and the first to receive a rating from S&P, signaling the continued strength of one of the fastest growing asset classes in the country.
"We are happy to see such strong investor support as Ygrene continues its mission of providing quality PACE financing to help build communities and improve the environment," said Tim Condon, CFO at Ygrene. "With the continued confidence of investors and credit rating agencies, Ygrene provides a unique financing option for property owners to conserve energy and water, improve resiliency against natural disasters and source clean energy systems. This record securitization enables the expansion of Ygrene into more cities and counties nationwide."
In addition to being the first-ever PACE transaction rated by S&P, this is the first PACE transaction to receive an AA+ rating by Kroll. It also received an E1 Score (the highest achievable score) from S&P Green Evaluation, another first for both Ygrene and the PACE industry.
The transaction also represents the seventh securitization – over $1 billion to date – sponsored by Ygrene since 2015. This transaction includes approximately $14 million in commercial originations and the nearly even split of underlying assets between California (55%) and Florida (45%) assessments, underscoring the quality and diversity of Ygrene's assets. The first payment of notes will be on October 15th, 2018.
Ygrene is a national leader in residential and commercial energy efficiency and resiliency project financing. Founded in 2010, Ygrene's award-winning, privately funded Property Assessed Clean Energy (PACE) program is revolutionizing the home improvement industry, making it easier for property owners to invest in their futures and a healthier environment. Ygrene is delivering greater choice for home and business owners by providing accessible and affordable financing for energy efficiency, renewables, water conservation, storm protection and seismic upgrades. Recognized as one of the fastest growing asset classes in the country, PACE has proven to be a successful tool for supporting public policy initiatives, all without the use of public tax dollars or credits. To date, Ygrene has provided over $1 billion of private capital to more than 69,000 property owners in over 500 communities, creating thousands of jobs and investing millions into local economies across the U.S. While PACE programs are enabled by state legislation and must be approved by local governments, Ygrene is not a government program. Learn more at ygrene.com.
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