Ygrene PACE Securitizations Over Last Nine Months Tops Half a Billion Dollars
Latest Issuance of $225 Million in PACE Assets Received AAA Rating From Kroll Bond Rating Agency, AA From S&P Global Ratings
grene, the nation's leading Property Assessed Clean Energy (PACE) provider, today announced the completion of a $225 million securitization transaction. Along with its record $340.5 million transaction in April 2018, Ygrene has securitized a total of $565.5 million over the last nine months. These transactions account for nearly 60 percent of PACE assets delivered to market during this time period. Ygrene remains the only PACE issuer with a rating from a major agency.
The most recent transaction represents the sixth securitization sponsored by Ygrene. The notes, issued by GoodGreen 2019-1, have two tranches securitized by a portfolio comprised mostly of residential PACE assets that were used to finance projects covering resiliency, hazard mitigation, energy efficiency, renewable energy and water conservation. Nearly 70 percent of the projects financed in the transaction are from Florida with the balance of projects financed from California. Approximately 92 percent of the projects financed are dedicated to residential property improvements, with the remaining 8 percent for commercial property improvements. The issuance received a AAA rating from Kroll Bond Rating Agency and an AA rating from S&P Global Ratings. The 2019-1 Trust Class A notes account for $218.25 million, and the Class B notes account for $6.75 million.
"We had great investor participation in this transaction in a challenging credit market. Many investors are seeing the value of the PACE collateral as the markets become more volatile," said Ygrene CFO, Tim Condon. "This securitization is another critical step in providing Ygrene customers access to affordable, private financing for resiliency, natural disaster, renewable energy, and energy efficient home and building upgrades."
Ygrene continues to expand its product offering for resiliency and natural disaster preparedness with about half of the projects financed allocated for resiliency, hazard mitigation, and hurricane preparedness.
"Ygrene is laser focused on building more resilient communities to safeguard properties from increasingly frequent inclement weather and natural disasters, including hurricanes in Florida and wildfires in California," said Ygrene President and CEO, Rocco Fabiano. "Today's transaction illustrates the high confidence the market has in the PACE asset-class and in Ygrene, the nation's leading PACE provider."
PACE is a great alternative for property owners seeking to make eligible upgrades while keeping payments affordable. PACE financing also serves as an essential public policy tool. For example, a recent study led by the University of Southern California's Sol Price School of Public Policy found that PACE hurricane resilience improvements made to approximately 12,000 Florida properties over the last several years are estimated to result in more than $500 million in avoided future hurricane disaster losses and more than $700 million in homeowner insurance premium savings over the next 20 years.
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 billion of private capital to more than 550 local communities, Ygrene has created thousands of jobs and invested millions into local economies across the U.S. Learn more at ygrene.com.