Renovate America launches $217.5 million securitization of PACE bonds

By Marisa Wong

Morgantown, W.Va., Feb. 12 – Renovate America announced its second green bond and sixth overall securitization of Property Assessed Clean Energy (PACE) bonds.

This securitization represents $217,503,000 of class A notes (Kroll: AA, DBRS: AA), secured by 9,252 PACE assessments levied against residential properties in 27 California counties.

The PACE assessments have an average balance of about $24,236, a weighted-average annual rate of 7.94% and a weighted-average original term of 14.78 years, according to a press release.

The PACE assessments were originated between October and December.

Morgan Stanley is the underwriter for the latest green bonds, according to the press release.

“This second PACE green bond means more than $1 billion in private capital has helped lower utility bills, reduce carbon emissions, and create clean energy jobs at no cost to taxpayers,” Renovate America’s chief executive officer J.P. McNeill, said in the release.

“Investor interest in PACE bonds is strong and growing – and the green bond designation has brought new capital support for these public policy objectives.”

Renovate America partners with local governments to provide its version of PACE, the HERO Program (Home Energy Renovation Opportunity), to homeowners who finance a wide variety of product installations to conserve water and energy. These installations include energy-efficient products like HVAC, windows, and roofing; renewable and alternative products like solar; and water efficiency products for indoor systems and outdoor landscaping.

HERO provides 100% financing for energy and water savings products for up to 20 years with fixed interest rates. Homeowners make payments along with their property taxes.

Renovate America is a San Diego-based provider of financing for energy and water efficiency home improvements in the United States.

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