Mosaic: $280 Mn Securitization of Solar Loans

US Financing Provider Mosaic Closed $280 Million Securitization of Residential Solar Loans; The Green Bond Offer Was Oversubscribed And Placed With 25 Institutional Investors
07:37 AM (Beijing Time) - 01. July 2020

Key Takeaways

  • US financing provider Mosaic has closed a $280 million securitization of residential solar loans
  • The Green Bond Offer Was Oversubscribed And Placed With 25 Institutional Investors
  • Deutsche Bank was the sole structuring agent, and Royal Bank of Canada and BNP Paribas acted as joint bookrunners

 

US financing provider Mosaic has closed a $280 million securitization of residential solar loans. The offering consists of four tranches of notes rated by Kroll Bond Rating Agency from “AA-” to “BB+” with weighted average lives ranging from 1.95 to 5.06 years and the notes are backed by $315 million of solar loans with a weighted average FICO score of 753, according to Mosaic.

With strong investor interest, the offering was multiple times oversubscribed and was placed with over 25 institutional investors, deepening the relationship with existing investors and attracting nine new participants, claims Mosaic.

“Our ability to securitize solar loans in this challenged market environment is a vote of confidence in solar energy as an asset class. It is also a testament to how the financial markets value Mosaic’s consistent performance and high quality standards,” said Billy Parish, founder and CEO of Mosaic, adding, “This securitization represents the highest level of investor demand we have ever seen and demonstrates the market’s appetite for our clean energy-backed assets.”

“Solar asset-backed securities are rising in popularity as institutional investors recognize their value for longer-term yield,” said Alex Kaplan, senior director of capital markets for Mosaic. “We are proud to be acknowledged by our peers in the capital markets and appreciate the commitment of the banks that took this transaction to market.”

More than $3.5 billion in solar loans have been funded through the Mosaic platform since its inception in 2012. End of 2017, Mosoaic sold $307.5 million in bonds across four tranches, was the largest solar loan securitization issued at the time (see Mosaic Closes $307.5M Solar Loan Securitization)

Mosaic said in its announcement that, “it will continue to be a frequent issuer in the securitization market.” The Mosaic Solar Loans 2020-1 transaction is Mosaic’s seventh solar loan securitization. Deutsche Bank was the sole structuring agent, and Royal Bank of Canada and BNP Paribas acted as joint bookrunners.

Mosaic’s recently announced a $50 million expansion and a 2-year extension of its BNP Paribas warehouse facility earlier this year

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani