Renew Financial completes securitization of residential PACE bonds

US firm Renew Financial has completed its first securitization of residential Property Assessed Clean Energy (PACE) bonds by issuing US$50 million in privately placed term notes.

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

As the administrator of the California first 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 voluntarily 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 stated:

“This bond issuance is an important milestone showing our progress toward enabling property owners nationwide to save money while reducing energy use. In the past year, we have completed financing for over $68 million in energy efficiency projects, expanded market coverage from 30% of California to 70%, as well as signed a major financing partnership with SolarCity to enable more commercial properties to go solar. Now, we are building a new, high-quality asset class in the form of a secure bond product that provides a return to investors while supporting the clean energy economy.”