Renew Financial completes $115 million securitization of PACE bonds via Natixis

Written By: Stratton Report
November 4, 2016

Renew Financial

On November 4, Renew Financial announced it had completed its third securitization of residential PACE bonds. The $115 million securitization, backed by some 4,000 PACE-financed home energy improvement projects, was rated AA(sf) by Kroll and has a coupon of 3.16%. 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.

Cisco DeVries, CEO of Renew Financial observed “This third bond issuance is an important milestone for both the company and the asset class. PACE is recognized as a growing asset class with exceptional investor demand.  As a company, we continue to further our mission. With this transaction alone, Renew financed projects that will reduce more than 140 thousand metric tons of greenhouse gas emissions. We are pleased with the continued growth.”

According to Renew Financial, the firm announced its first securitization of residential PACE bonds totaling $50 million in September, 2015, followed by a second securitization totaling $123M in June of 2016. This securitization builds on Renew Financial’s recent close of a $200M revolving credit facility with Natixis.

Brock Wolf, Executive Director at Natixis, noted:

“Natixis remains committed to playing a leading role in offering financing solutions for clean energy across the world. Renew Financial is an exemplary clean energy platform, and we are very proud of the strong relationship we have developed with Cisco and his team across a number of successful transactions.”