... Loanpal completes largest securitization of residential solar loans | Solar Builder
 

Loanpal completes largest securitization of residential solar loans

Loanpal

Loanpal closed a securitization of approximately $434 million worth of Loanpal solar loans previously purchased by Goldman Sachs, Blackstone Credit and Goodfinch. This represents the largest securitization of residential solar loans to date and reaffirms Loanpal’s high quality assets and strength in the marketplace. Renewable energy is forecasted to be the fastest-growing source of electricity generation in 2020, underscoring the sector’s resilience in a year of unprecedented economic disruption.

Loanpal leverages its deep expertise in technology, data and lending to make sustainable home improvement products more accessible for homeowners, and to give financial institutions and home improvement contractors the confidence to finance those products and help combat climate change. Loanpal works with credit unions, insurance companies, banks and asset managers to provide $400 million of loans through its technology platform per month, allowing 10,000 families to reduce their carbon footprint and live a more sustainable life. Since 2018, the Company has transacted over $5 billion in solar loans on its technology platform.

“The market for sustainable home improvement products is estimated to be worth more than $100 billion in 2021. Access to efficient financing for those products will be a key driver for the sector and the clean energy industry overall,” said Loanpal President and Chief Investment Officer Tanguy Serra. “We’re thrilled to continue our incredible relationship with Goldman Sachs and Blackstone Credit who support Loanpal’s mission and deeply understand the solar loan asset class.”

Behind the numbers. This securitization, sponsored by Goldman Sachs consists of $346.7 million of notes rated by Kroll Bond Rating Agency. The notes are modeled to a weighted average life of approximately 5.69 years, 7.23 years and 7.84 years for the Class A’s, B’s and C’s respectively, and are backed by an initial collateral pool of approximately $434 million of loans with an average FICO score of 744.

“Efficient and innovative financing of renewable energy sources is part of our core offering. Having played a strategic role in Loanpal’s securitization program since inception, we look forward to seeing how this transaction sets the precedent for future activity,” said Katrina Niehaus, Managing Director at Goldman Sachs.

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