Dividend Finance Inc (“Dividend” or the “Company”), a leading specialty finance and consumer lender for residential solar energy systems, home energy-related improvements and Property Assessed Clean Energy (“PACE”) programs, has closed its second residential solar loan securitization
“Our second securitization affirms Dividend’s commitment to the residential energy finance sector,” said Eric White, Dividend’s CEO. “The success of the transaction, including its ‘Green Bond’ designation and the first ‘AA’ rated solar loan bond, further demonstrates the maturation of the residential solar loan asset class to the benefit of all stakeholders.”
The $104,664,000 Dividend Solar Loan Backed Notes, Series 2018-1 (the “Notes”), include the industry’s first “AA” rated solar loan-backed security. Kroll Bond Rating Agency, Inc. (“KBRA”) rated the Notes, which also received “Green Bond” designations from Sustainalytics pursuant to the standards of the International Capital Market Association.
“Sustainalytics recognizes the importance diversification plays in developing the green bond market,” said Sustainalytics’ Executive Director of Sustainable Finance Solutions, Heather Lang. “We applaud Dividend Finance for offering investors a credible way to increase the impact of their investments through solar loan-backed securities.”
Credit Suisse Securities (USA) LLC acted as sole structuring agent and sole bookrunner while Citigroup Global Markets, Inc. acted as co-manager. The Series 2018-1 securitization included $25,340,000 2.61% Class A Notes, $66,400,000 4.29% Class B Notes, $6,600,000 5.14% Class C Notes and $6,324,000 6.39% Notes, rated AA(sf), A(sf), BBB(sf) and BB(sf), respectively, by KBRA.
This is Dividend’s second securitization of its EmpowerLoan™ portfolio secured by residential solar energy systems. The Company previously issued $128,950,000 of solar loan backed notes in October 2017.