Friday, September 23, 2016
Renovate America Completes $320M Bond Deal For Green Projects
San Diego-based Renovate America, which provides residential Property Assessed Clean Energy (PACE) financing--which allows homeowners to complete home energy upgrades and renovations paid via their property tax bill--said on Friday that it has securitized $320M in bonds. The company said the latest deal brings its total issued bonds to $1.67 billion.
According to Renovate America, the new bonds represented 12,394 PACE assessments in 34 California counties. Renovate America offers up loans for energy upgrades--such as windows, insulation, and the like--where payments for those upgrades are paid via a customer's residential property bill, and amortized over the life of those improvements--which reduces the risks of default by those customers for investors. On the residential customer side, those improvements usually help reduce energy usage and save those customers money. Renovate America said the projects backed by those bonds are expected to lower homeowner's water and energy bills by nearly $500M over their lifetime, and avoid half a million tons in carbon dioxide missions.