Leading US installer SolarCity has completed its fifth securitisation of distributed solar PPA and lease assets — standing as the company’s sixth securitisation transaction overall.
SolarCity wrapped up a private placement that led to proceeds of US$49.6 million — US$3.13 per watt of generation capacity in the portfolio— with a yield rate of 6.25%.
Unlock unlimited access for 12 whole months of distinctive global analysis
Photovoltaics International is now included.
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Unlimited digital access to the PV Tech Power journal catalogue
- Unlimited digital access to the Photovoltaics International journal catalogue
- Access to more than 1,000 technical papers
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Or continue reading this article for free
Radford Small, executive vice president of capital markets at SolarCity, noted: “Securitisation continues to be a cost-effective financing mechanism for us, even in a volatile market, which reflects the quality of our distributed solar assets and the reliability of these cash flows. In this transaction we received US$3.13 of financing per watt of solar generation capacity in the portfolio, well outpacing the US$2.71 per watt installation cost we achieved in Q4 2015.”
SolarCity’s portfolio of solar PPA and lease contracts earned an investment grade rating of BBB+ from Kroll Bond Rating Agency and BBB from Standard & Poor's.
Goldman, Sachs & Co. and Credit Suisse Securities served as co-structuring agents and co-bookrunners for the deal.
A feature exploring the prospects for solar securitsation can be found in issue 5 of PV Tech Power, available here.