Renew Financial closes 2nd PACE securitization for $123 million

Written By: Stratton Report
June 22, 2016


On June 22, Renew Financial announced it has completed its second securitization of residential Property Assessed Clean Energy (PACE) bonds. The $123 million securitization, backed by over 4,800 PACE-financed home energy improvement projects, was rated AA (sf) by Kroll and has a coupon of 3.75%.

The securitization was structured and placed by Natixis Securities Americas LLC, a U.S.-registered broker-dealer and subsidiary of Natixis.

The transaction was considered a green bond based on the principles published by the International Capital Market Association.

As the administrator of the CaliforniaFIRST PACE financing program, Renew Financial works with more than 300 city and county governments in California to provide PACE financing to nearly 20 million Californians. PACE allows property owners to finance the entire cost of energy efficiency, water-efficiency and renewable energy upgrades to their homes and businesses, and then repay those costs as a line item on their property tax bill over the course of up to 25 years.

Renew Financial CEO Cisco DeVries noted:

“This second bond issuance is an important milestone, reflecting our progress toward enabling property owners across the country to save money while reducing energy use, as well as the surging demand for this asset class. Over our history, Renew Financial has financed projects that reduce more than 1.65 million metric tons of greenhouse gas emissions and cut homeowner energy bills by $900 million. This remarkable success is only possible through our strong access to the capital markets.”

Renew Financial announced its first securitization of residential PACE bonds totaling $50 million in September, 2015. This second securitization builds on Renew Financial’s recent $70M funding round, a new partnership with Rainforest Trust, and the appointment of former California State Treasurer Kathleen Brown to the company’s Board of Directors.