Ygrene Energy Fund, Inc., a leading national provider of PACE (property assessed clean energy) financing, announces the pricing of a $176.5 million securitization rated AAA/AA and A/A rating by Morningstar and Kroll, respectively.Ygrene continues to offer the industry’s most diversified PACE assets, with notes secured by 7,672 assessments on both residential (96.4%) and commercial (3.6%) properties in California and Florida. This is the company’s second public securitization and fourth overall, comprised of $171.3 million of class A notes and $4.7 million of class B notes. The entire securitization achieved a Green Bond-1 rating by Moody’s Investor Service – the highest green bond designation.
In addition to the AAA/AA rating on the A note, Ygrene’s B note rating was upgraded from a BBB rating in the previous securitization to an A rating by Kroll. The company was first to achieve AAA ratings from Morningstar, exemplifying the industry ‘gold standard’ in securitizations. “The AAA bond rating underscores the quality of Ygrene’s asset-backed securities and of our platform,” said Ygrene’s President and CEO Rocco Fabiano. “We believe the favorable investor sentiment and the strong ratings for this latest securitization reward our efforts in implementing the highest standards in the industry. Ygrene is proud to offer affordable financing to consumers for their energy efficiency, water conservation and storm resiliency improvement projects.”
Strengthening Diversity and Transparency Through Financial Expertise
One of the fastest growing components of the consumer finance marketplace, PACE financing uses private capital to fund critical energy efficiency, water conservation and storm resiliency improvements for property owners, at no cost to taxpayers. By increasing its volume of Florida originations, Ygrene has improved the diversification of its pool, now offering an assessment mix comprised of 56% California and 44% Florida assets. Ygrene’s capital markets expertise combined with an innovative and transparent approach has led to investors, lenders and rating agencies gaining a deep understanding and trust in its PACE platform.
“Ygrene’s continued diligence and proactive approach to the industry instills confidence that we are dedicated to protecting our consumers and providing an affordable financing alternative,” said Rasool Alizadeh, Ygrene’s Head of Capital Markets. “We are committed to displaying market transparency within our securitization platform aligned with our goal of becoming a programmatic issuer.”