Loanpal, a company that specializes in residential solar financing, says Goldman Sachs has priced securitizations of $459 million worth of Loanpal solar loans previously purchased by Goldman Sachs and funds managed by CarVal Investors.
Clients of GSO Capital Partners, the credit division of Blackstone, are the senior investor in the securitizations. These securitizations are an important milestone as they represent the first transactions in the solar industry after the start of COVID-19. Furthermore, Goldman Sachs has expanded its warehouse facility with Loanpal to $300 million. As part of its commitment to ESG, Goldman Sachs is also committing to buying an estimated $320 million of principal of loans from Loanpal over the coming six months.
“We’re thrilled to be working with such incredible partners who support Loanpal’s mission and deeply understand the solar loan asset class,” says Tanguy Serra, president and chief investment officer at Loanpal.
“The securitization of these loans signifies a reopening in the marketplace for our industry which will allow more homeowners to add solar to their homes and decrease their carbon footprint,” she adds.
Loanpal partners with credit unions, insurance companies, banks and asset managers to provide $200 million of loans through its technology platform monthly, allowing 6,000 families to reduce their carbon footprint and live a more sustainable life. Since 2018, the company has transacted over $3.5 billion in solar loans on its technology platform.
These securitizations, issued by Mill City Solar Loan 2020-1 Ltd. and Loanpal Solar Loan 2020-1 Ltd., consist of $372 million of notes rated by Kroll Bond Rating Agency. The notes are backed by an initial collateral pool of $459 million of loans with an average FICO score of 750.