Climate First Bancorp says October was its ‘largest-ever solar financing month’
The push to sell and install solar before the residential tax credits expire is real. Climate First Bank, the world’s first FDIC-insured, values-based, digital-forward community bank founded to combat the climate crisis, says it financed more than $60 million in residential solar deals in October alone – powered by its fintech arm OneEthos. October’s total marked the bank’s largest solar financing month ever, nearly double the amount financed in September.
“With the Federal solar tax credits coming to an end, homeowners and installers across the country are racing to finalize deals. These Notes will not only help us support their work, but provide us with the capital and flexibility to invest in America’s renewable energy independence,” said Lex Ford, President of Climate First Bancorp.
The volume news came in Climate First Bancorp’s announcement that it had completed a $30 million private placement offering of Fixed-to-Floating Rate Subordinated Notes to continue the rapid national growth of its residential solar financing business.
“The strong demand for these Notes makes it clear that investments into America’s renewable energy infrastructure – from residential and commercial solar and wind farms to battery energy storage – are only just beginning,” said Ken LaRoe, CEO of Climate First Bancorp. “By fighting climate change, we aren’t just on the right side of climate history moving forward, we are on the right side of the consumer and capital markets today.”
OneEthos explained
If you’re unfamiliar with the work of OneEthos, check out this episode of The Pitch in our archives.
“Together, Climate First Bank and OneEthos offer the best, easiest-to-use solar platform on the market today – both for installers and homeowners,” said Marcio deOliveira, CEO of OneEthos. “While other providers have stepped away from the industry, we are doubling down, investing in the people and technology that will make us a market leader for the next generation. That’s critical in our fight against climate change.”
Notes on the $30 Million Subordinated Notes
The Notes will initially bear interest at an annual fixed rate of 8.00% for the first five years, payable semi-annually in arrears, to be excluding November 1, 2030, at which time the interest rate will reset quarterly to an annual floating rate equal to the then current three-month term Secured Overnight Financing Rate plus 472 basis points, with interest during this period payable quarterly in arrears.
Climate First Bancorp may, at its option, redeem the Notes, in whole or in part, on any interest payment date on or after November 1, 2030, or at any time, in whole but not in part, upon other specified events. The Notes have been structured to qualify for Tier 2 capital for Climate First Bancorp for regulatory capital purposes.
