FT: “The world’s first sunshine-backed bond could be sold in the coming weeks after securing a coveted credit rating that should make it palatable to large investors. SolarCity said on Monday it would sell a $54.4m bond backed by cashflows from the rooftop solar panels leased to US home owners, who can then claim certain tax breaks from the government.” “Credit Suisse is bookrunner for the securitisation, which will only be eligible to be sold to big, qualified investors.
According to people familiar with the proposed deal, the bonds have secured a credit rating from Standard & Poor’s and pre-marketing of the private placement began on Friday. SolarCity, Credit Suisse and S&P declined to comment.
Bankers have been experimenting with new assets that can be bundled and sold to investors, as they take advantage of resurgent demand for higher-yielding, sliced-and-diced securitisations. For instance, this week bankers also began selling another type of securitisation backed by foreclosed houses that have been turned into rental homes.
Deutsche Bank, Credit Suisse and JPMorgan are marketing the “Reo-to-rental” after securing a surprise triple-A rating from Moody’s, Morningstar and Kroll for the bonds, which are backed by single-family rental properties owned by Blackstone.
….“There is a pool of capital that wants to invest in these types of assets,” said one banker at a large US investment bank. “People love to talk about clean technology and renewables, because at some level most institutional investors want to invest in things they can put in their annual report with glossy pictures.”
Solar panel companies will also be hoping that a successful sale of the bonds will provide them with an additional source of capital to finance solar panel installations. To date they have mostly relied on financing from big investment banks to help fund their growth.”
Future Today
