Energy Efficient Equity (E3) Closes Inaugural $169 million ABS Transaction in Collaboration with Natixis

E3 2019-1 included 3 classes of notes, all of which were rated by Kroll Bond Rating Agency (“KBRA”). The senior class of notes was rated “AAA” by KBRA, marking the first time an issuer of primarily residential PACE assets was able to issue “AAA”-rated notes for its inaugural securitization. In addition, the Class A and Class B notes were considered Green Bonds by the issuer and received a “GB1” assessment by Moody’s Investment Services (its highest assessment).

“This transaction was a huge success for the entire team at E3 and achieved many important goals for our company,” said Brad Knyal, Chief Executive Officer of E3. “By accessing permanent financing for our originations via the capital markets, we have validated our platform’s vision of providing an affordable financing option for property owners seeking clean-energy improvements for their properties.” 

Rasool Alizadeh, Chief Financial Officer of E3, added, “E3 is committed to providing homeowners and commercial property owners a transparent and affordable financing option through our PACE program. Our origination and underwriting process ensures both property owners and their contractors are eligible for the PACE program, with a focus on robust consumer protections from application to funding. The strong support we received from capital markets investors provides a significant endorsement for the quality of our platform.”

“Natixis is committed to supporting clean energy finance companies on a global basis and is a leader in the global “Green Bond” sector,” said Robert White, Head of Green & Sustainable Finance, Natixis CIB Americas. “Our securitization franchise has had success with a number of inaugural issuers across asset classes over the past few years, and we were thrilled to work with the extraordinary team at E3 on their first transaction.”