SAN DIEGO, June 6 – Renovate America, a leading provider of home improvement financing, has been recognized as “Esoteric ABS Issuer of the Year” in the 2018 U.S. Securitization Awards announced by GlobalCapital magazine. The award recognizes Renovate America’s position as a leader in the esoteric ABS market, which includes not only PACE, but also equipment leasing, containers, marketplace lending, whole business, solar, and cell tower deals, to name a handful.
Residential PACE programs such as Renovate America’s industry-leading HERO financing option empower home energy, efficiency and resiliency improvements, which property owners then pay for over time at a competitive, fixed rate through an additional line item on their property taxes. Since HERO launched in late 2011, over 115,000 homeowners have used it to finance renewable-energy, energy-efficient and water-efficient upgrades to their homes.
“The Esoteric ABS Issuer of the Year category was a hard-fought race in this year’s awards poll,” said GlobalCapital Editor Max Adams. “Respondents to GlobalCapital’s survey ultimately cited Renovate America as deserving of the top honor, recognizing its history as a pioneer of the PACE securitization market, coupled with a strong track record of programmatic issuance from its HERO shelf. GlobalCapital is happy to recognize Renovate America as the top issuer in a complex and ever-evolving corner of the U.S. securitization market.”
“We are thrilled to receive this distinguished award,” Renovate America Head of Investor Relations Nicole Montecalvo said of the award. “With over $3 billion in PACE securitizations to date, we’ve developed a broad investor base from around the globe that is enabling our green bond platform to meet environmental and economic public-policy goals in local communities across the United States.”
Renovate America maintains the first and largest platform for Property Assessed Clean Energy (PACE) green bond securitizations. Renovate America’s 13 HERO PACE securitizations, including the latest, HERO Funding 2018-1, which closed last month, have attracted 68 unique investors from the Americas, Europe and Asia. HERO asset-backed securities were the first PACE bonds to have been designated green bonds, and the first to earn a rating of AAA from DBRS. The HERO ABS program has built a reputation for innovative structuring: it was the first PACE ABS program to create a premium senior bond and the first PACE ABS program to create a BBB-rated class within its securitizations, which other issuers have since replicated.
HERO green bonds do not fund aspirational or speculative projects: most of the proceeds have already been invested in projects whose environmental impact is already being realized. As a result of the projects financed across the 13 HERO securitizations to date, homeowners are projected to save over 17.5 billion kilowatt-hours of energy and over 11.5 billion gallons of water while avoiding over 4.5 million tons of carbon dioxide emissions over the useful life of the installed products. Finally, by spurring demand for contractor services, it’s estimated that these HERO-financed projects have created more than 26,000 jobs.
About Renovate America
Renovate America offers a tech-enabled financing platform for home improvement and commercial retrofits that empowers communities to modernize and make their housing stock more efficient, while giving small businesses the tools they need to grow. In addition to financing home improvements through an unsecured lending product, Benji, Renovate America offers communities HERO financing. HERO is the leading residential Property Assessed Clean Energy (PACE) program in the U.S. and has been used by the owners of over 115,000 homes to make energy and efficiency improvements. It is estimated that HERO is on track to save billions of dollars in energy and water bills, and has created over 26,000 local trade jobs that cannot be offshored or automated. Renovate America has built the world’s largest green bond platform, with a volume of originations that enables securitization of HERO PACE bonds multiple times a year, attracting international investment to meet U.S. clean-energy objectives.