Natixis Arranges Renewable Energy ABS Private Placement for Golden Bear 2015-1
First PACE Securitization for Renew Financial
Demonstrating its strategic commitment to financing Property Assessed Clean Energy (PACE) transactions, Natixis today announced that it acted as Sole Lead-Arranger and Placement Agent for Golden Bear 2015-1, issuer of a $50 million private placement of asset -backed securities financing a portfolio of residential PACE bonds originated by Renew Financial. The transaction is the inaugural PACE securitization by Golden Bear and Natixis’ first in the US.
PACE assessments are an emerging ABS asset class in the renewable energy sector which arise when a residential property owner finances the installation of clean energy improvements (e.g., solar panels) through a special voluntary municipal assessment, in this case under the CaliforniaFirst residential PACE program. Renew Financial’s CEO and Founder developed the PACE financing model, now used in California and adopted by many other states. PACE bond securitizations are a growing part of the “green bond” market. Natixis estimates that $600 million of such securities have been issued to date.
The securitization consisted of $ 50 million in privately placed Class A Notes. Junior capital in the Golden Bear 2015-1 vehicle has been subscribed by a business development corporation.
“Natixis values its relationships with the transaction sponsors and is gratified to have been chosen to lead their first PACE securitization,” said Emmanuel Lefort, Global Head of Structured Credit and Solutions, Natixis. “As we continue to play a leading role in this growing sector, we look forward to deepening these relationships as Golden Bear continues to grow and returns to the market as a repeat issuer.”
Kevin Alexander, Head of Global Markets Americas, said, “Natixis is proud to be at the forefront of innovation and committed to growing its renewable energy financing footprint.”