Today (May 19) Connecticut’s Green Bank, the Clean Energy Finance and Investment Authority (CEFIA), announced that it and the the Clean Fund securitized $30 million of commercial solar projects sponsored through Property Assessed Clean Energy (PACE) transactions. The bonds were issued through the national Public Finance Authority, a governmental entity that issues tax-exempt conduit bonds.
It’s among the first bond offerings for solar power and the first securitization of commercial renewable energy and energy-efficiency loans, according to the green bank and it could lead to further such securities. In all the Public Finance Authority converted a $30 million portfolio of commercial PACE projects into bonds, which were then purchased by Clean Fund and CEFIA.
To support commercial PACE-sponsored projects in Connecticut CEFIA created a $40 million fund in 2013. “We are pleased to have been selected by Connecticut’s green bank and are now investing in Connecticut PACE projects”, said John Kinney, chief executive officer of Clean Fund. “The due diligence performed at the front end provides a strong foundation for sound investment opportunities. In just a year, Connecticut has moved to the front of the country when it comes to activity on PACE.”
“The sale of this initial portfolio of PACE liens to Clean Fund is the latest step in our effort to attract and deploy private capital here in Connecticut supporting energy efficiency and renewable energy opportunities,” said Bert Hunter, chief investment officer of CEFIA. “Some of the greatest value of the sale has been our enhanced understanding of how private capital providers currently value these low-risk, secure transactions.” He added that the PACE program is helping reduce the cost of financing such projects by reducing the risk of investing in such assets.
In all 33 projects are approved and 23 of them have closed with the PACE financing, representing the $30 million investment. The projects include energy efficiency, distributed generation and hybrid projects. The projects are expected to create $40 million in savings for the project owners. CEFIA already has 75 more projects in the PACE pipeline and it anticipates financing of up to $75 million by the end of 2014.Tweet