Renovate America gets green bond certification for all of its PACE securitizations

Written By: Stratton Report
April 19, 2016

renovate america

On April 19, Renovate America, announced that its first four securitizations, which were completed in 2014 and 2015, have been designated as green bonds.

Sustainalytics, a provider of ESG and corporate governance research and ratings, provided a second opinion that the bonds adhere to the Green Bond Principles, and that the proceeds fund projects with environmental benefits.

The HERO Bond platform is now the first asset-backed securities platform to solely produce green bonds. Renovate America has securitized $1.05 billion in PACE-backed securities through these six transactions.

J.P. McNeill, Co-founder and CEO of Renovate America noted:

“Our platform is designed to consistently produce marketable securities that provide investors with a green investment opportunity and the ability to support a program that is helping make tens of thousands of homes more efficient. The cumulative environmental benefits of the assets backed by HERO Bonds are significant, real, and immediate.”

PACE green bonds have received substantial interest in part because they do not fund aspirational or speculative projects¬ – the proceeds have already been invested in projects with verified environmental impact.

Craig Braun, Managing Director-Capital Markets of Renovate America remarked: “The HERO Bond platform has been very well received by the investment community, and we are actively looking for partners who want to grow their green portfolios. Now that we have established an entirely green bond platform, we are seeking to align the products and securities that we produce with correlated pools of capital.”

Sustainalytics’ Executive Vice President of Advisory Services, Simon MacMahon observed: “Home energy use is a major contributor to global emissions, and the expansion of Renovate America’s platform will only help to increase the energy-efficiency of homes. We applaud Renovate America for its sustainability leadership and look forward to seeing the impact these bonds have on homeowners.”