The largest installer in the US, SolarCity has completed the US$54.4 million funding round, the first secured against solar energy assets.
The company was able to raise the funds at an interest rate of 4.8%, offering a new avenue for low cost finance into the sector. More installers are expected to follow suit with similar offerings.
“This transaction is a breakthrough and will pave the way for others, but its greater significance is the validation of the quality of SolarCity's assets,” said Bob Kelly, CFO, SolarCity in a statement released by the company.
“SolarCity lowers what is typically the highest operating cost for households and gives them long-term control over that cost. Customers highly value those attributes, and that's why these assets perform so well,” claimed Kelly.
The bonds are rated at BBB+ by Standard and Poors.
Kelly told Bloomberg that the company could repeat the bond issue up to a value of US$200 million in the next quarter and may consider launching a new bond as often as every quarter.