Ygrene Completes $318 Million Securitization of Pace Assets
July 31, 2020
Leading PACE Provider closes their 10th ABS Transaction
(Petaluma, Calif.) - Ygrene, the nation’s leading issuer of securities backed by Property Assessed Clean Energy (PACE) bonds and assessments, announced today the closing of its GoodGreen 2020-1 securitization with the issuance of $318 million of investment-grade debt securities. Building on the more than $525 million the Company securitized in 2019, Ygrene has now completed ten securitization transactions totaling $2 billion and remains the only PACE originator with a successful and continuous track record of securitizing both residential PACE and commercial (C-PACE) assets.
“Even amid the pandemic, this securitization showcases the high confidence that the capital markets have in PACE as one of the strongest forms of credit within the asset-backed securities (ABS) market,” said Greg Saunders, Ygrene Chief Financial Officer. “We are particularly excited about the growth in our commercial and multi-family property portfolio, which accounted for about 16% of the total collateral pool backing the securitization.”
Michael McCormick, Ygrene Director of Capital Markets, added, “we are very pleased that this transaction was again rated as a Green Bond at the highest level by S&P Global Ratings (E1). This rating represents a balanced combination of factors including strong governance, transparency, and impact in mitigating the effects of climate change. We’ve found that many of our investors are interested in purchasing high-quality assets that make a positive impact on the environment, as well as the health and safety of American communities.”
“In addition to the more than $500 million we securitized in 2019, today’s transaction underscores Ygrene’s continued leadership of the PACE market,” said Jim Reinhart, Ygrene Chief Executive Officer. “We look forward to building on our success by helping communities get back on their feet in the wake of COVID-19 through PACE-enabled economic stimulus and job creation. PACE protects property owners every step of the way with the highest level of consumer protection in the home improvement financing industry -- including built-in contractor oversight – resulting in best-in-class consumer and contractor satisfaction.”
This securitization was Ygrene’s second transaction rated by DBRS Morningstar, a global rating agency with significant experience in the ABS, CMBS, MBS and other capital market sectors. In addition, S&P Global Ratings issued a Green Bond rating of E1 – the highest tier within their green bond rating methodology. Deutsche Bank was the lead structuring agent and bookrunner, along with Natixis serving as co-bookrunner, and ING serving as co-manager.
Through public-private partnerships, PACE stands out as a trusted source of private capital for helping to meet health, safety and environmental goals while spurring local economies with job growth and, as a result, a higher overall tax base -- without the use of public funds.
PACE is a proven solution to help reduce the impacts and costs of natural disasters and climate change, while creating jobs and boosting local and state economies. Ygrene’s PACE projects in California, Florida and Missouri have created more than 37,000 jobs while adding more than $4.3 billion in local economic stimulus. In addition, Ygrene’s PACE projects are expected to save property owners over $1.4 billion in insurance costs over the lifetime of their improvements. Ygrene’s PACE financings are also playing a crucial role protecting the environment, installing more than 105 megawatts of clean solar energy and reducing carbon emissions by more than 2 million metric tons, the equivalent of taking more than 432,000 cars off the road for a year.
Ygrene's award-winning PACE program, with built-in consumer protections, is delivering greater choice for home and business owners by providing accessible and affordable financing for energy efficiency, resiliency, renewables, water conservation, storm protection, and seismic upgrades. Recognized as one of the fastest growing asset classes in the country, PACE has proven to be a successful tool for supporting public policy initiatives, all without the use of public tax dollars or credits. By providing over $1.9 billion of private capital to more than 550 local communities, Ygrene has created tens of thousands of jobs and invested millions into local economies across the U.S. Learn more at ygrene.com.