US-based utility AES Distributed Energy has filed for an asset-backed security (ABS) with the Securities and Exchange Commission.

This will be the first deal backed by solar assets to be sponsored by a utility, according to a Reuters report.

The collateral portfolio of the debt security comprises equipment leases and power purchase agreements (PPAs) relating to 43MW of solar assets owned through 15 different project companies. The majority are municipal and commercial assets but some are residential, said Reuters.

The ABS is to be issued via a platform named Aurora Master Funding. Morgan Stanley, which finances AES Distributed Energy via its MS Solar Solutions subsidiary, is underwriting the ABS.

To date, there have been five public solar ABS deals worth a total of US$560.5m, of which four came from US-based PV developer SolarCity. The other came from SunRun.