Renovate America sells $284 million PACE bonds in ninth securitization

By Susanna Moon

Chicago, Dec. 15 – Renovate America Inc. closed its ninth securitization of PACE bonds with the issue of $284 million of class A1 and A2 notes (Kroll: AA/DBRS: AA).

The notes are initially secured by 9,008 PACE assessments levied on residential properties in 36 California counties as part of Renovate America's HERO Program, according to a company announcement.

The initial PACE assessments have an average balance of $22,722.51, a weighted annual interest rate of 7.99% and a weighted-average original term of 15.48 years. The initial PACE assessments were originated between Sept. 7 and Nov. 18.

The HERO Funding 2016-4 securitization brings the total issue amount to more than $1.9 billion.

The projects backed by the bonds are expected to lower homeowners' water and energy bills by more than $298 million over the useful lifetime of the products installed, the release noted.

The Home Energy Renovation Opportunity (HERO) Bond platform is the first asset-backed securities platform to solely produce green bonds, with each of the company’s previous eight securitizations having been assessed by Sustainalytics, according to a previous notice.

Renovate America previously said it works with local governments to provide the HERO Program to homeowners to finance a 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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