Renovate America wins green bond award for PACE securitizations

Written By: Stratton Report
September 7, 2016

renovate america

On September 7, Renovate America, a provider of residential PACE financing, announced it had won the Best Green/Socially Responsible Investment Asset-Backed Securities Deal of the Year. Renovate America also finished second behind Apple in the category of North American Green/SRI Deal of the Year. The awards were part of GlobalCapital’s inaugural SRI/Green Bond Awards program.

Resulting from an extensive market poll issued by GlobalCapital, banks and investors were asked to vote on the industry players and deals which displayed innovation or boldness, the provision of expert advice in unpredictable times, or the ability to unearth new pots of investor demand.

PACE green bonds such as those issued by Renovate America have received significant investor interest in part because they do not fund aspirational or speculative projects; the proceeds have already been invested in projects with verified environmental impact.

Renovate America Managing Director of Capital Markets Craig Braun noted: “These awards recognize the efforts of everyone at Renovate America who worked to establish our HERO bond platform, to complete these transactions, and to grow investor interest. These recognitions help solidify the HERO bond platform and PACE assessments as a growing, legitimate asset class.”

Braun accepted the award at the Sustainable and Responsible Capital Markets Conference in Amsterdam.

Renovate America’s SVP for Capital Markets Adam Garfinkle observed:

“Investor interest in HERO bonds is growing with each issuance because the bonds provide significant relative value versus bonds of similar credit and duration. Our core investor base remains solid and we add new investors with each transaction.”

Per Renovate, since its inception in December 2011, the HERO Program has financed more than $1.75 billion of improvements in more than 75,000 homes throughout California. It is currently available to 88% of California households, and is scheduled to launch this month in Missouri. In addition to spurring significant water savings, HERO has financed projects that together will save more than 11 billion kWh of grid electricity.