Ygrene Energy Fund Completes $145 Million Securitization of PACE Bonds with Strategic Insurer, Global Atlantic Financial Group
Ygrene Energy Fund, Inc., the leading provider of residential, multifamily and commercial Property Assessed Clean Energy (PACE) financing, recently announced the completion of a $145 million private securitization transaction with strategic insurance partner, Global Atlantic Financial Group, by issuing privately rated Class A notes. The transaction is the company’s second securitization to combine both residential and commercial assets in multiple states, including California and Florida.
Authorized by local municipalities, Ygrene provides 100% financing for property owners to deploy energy efficiency, renewable energy, water conservation and climate resiliency upgrades to their buildings through their award winning YgreneWorksTM PACE program. Currently approved in over 319 cities and counties across California, Florida, Georgia, and Missouri, Ygrene offers the only PACE program with repayment terms of up to 30 years, resulting in lower monthly payments and potentially making even the most expensive upgrades affordable.
This securitization funds approximately 6,041 energy and water conservation projects, providing home and business owners with over $290 million in estimated savings on energy and water bills, and eliminating over 174,000 metric tons of CO2 from the atmosphere. “We are excited to complete our second private PACE securitization with Global Atlantic,” said Ygrene CEO, Stacey Lawson. “By combining residential and commercial assets in multiple states, we are able to offer a powerful tool that will help property owners across the country save energy and money, communities meet their environment goals and create local jobs, and ensure a high quality return for investors.”
Since Ygrene’s inception in 2010, thousands of home and business owners have utilized this simple and affordable PACE financing mechanism to improve the value of their properties and to save on their energy and water bills. Ygrene has approved over $2.07 billion in water conservation, energy efficiency, renewable energy, and climate resiliency improvements, and has completed projects representing an estimated 8,679 local jobs and $1.4 billion in annual economic stimulus for local communities.
“The successful closing of this securitization, along with the high rating and advance rate, reinforces the growing understanding by ratings agencies and investors of the strength and security of the PACE asset class,” said Michael Chan, Ygrene CFO. “It’s a very exciting time for Ygrene and the PACE industry as a whole. I expect this trend to continue as we build strong, long term relationships with strategic investors.”
Ygrene’s PACE program has won a number of national and international awards including the 2012 Edison Award for Best Clean Energy Finance Model, the Climate Change Business Journal Innovation Award, and a Business Excellence Award from Richard Branson’s Carbon War Room presented at Rio+20. Ygrene has also been selected as a “financial ally” by the Better Buildings Challenge, which is sponsored by the U.S. Department of Energy.