The securitization, the largest residential solar securitization to date, brings the total amount of securitized loans generated on the Loanpal technology platform to $1.4 billion since the beginning of 2020
Loanpal, the nation’s leader in point-of-sale sustainable home improvement financing, announced that Loanpal Solar Loan 2021-1 Ltd. and Loanpal Solar Loan 2021-1 LLC (“LPSLT 2021-1”) have closed a securitization of approximately $474 million worth of Loanpal solar loans previously purchased by Goldman Sachs Lending Partners LLC, Blackstone Credit, Davidson Kempner Capital Management LP, funds managed by CarVal Investors, Credigy and GoodFinch. This transaction confirms the increased demand in the marketplace for high-quality ESG assets and represents the fourth securitization since the beginning 2020 for loans generated on the Loanpal platform, totaling over $1.4 billion during this time period.
Loanpal leverages its deep expertise in technology, data and lending to make sustainable home improvement products more accessible for homeowners who are looking to have a positive impact on the planet. Loanpal’s proprietary technology platform is accessed by more than 12,000 sales professionals at the point-of-sale, creating a highly efficient, super-prime channel for financial institutions to deploy their capital in ESG assets. Loanpal works with credit unions, insurance companies, banks and asset managers and has provided approximately $5 billion of solar loans and other home efficiency loans through its platform since 2018, empowering over 175,000 families to date to take steps that reduce their carbon footprint.
This securitization, sponsored by Goldman Sachs, consists of over $430 million of notes, of which $390 million are rated by Kroll Bond Rating Agency. The notes are modeled to a weighted average life of approximately 5.44 years, 6.48 years and 6.95 years for the Class A Notes, Class B Notes and Class C Notes, respectively, and are backed by an initial collateral pool of approximately $474 million of loans with an average FICO score of 742.
Katrina Niehaus, Managing Director at Goldman Sachs said “As homeowners continue to adopt clean-energy products, access to efficient capital is central to supporting growth in the market. Loanpal continues to be a leader in the sustainable home improvement market and we are excited to be part of a transaction that will help evolve the financing of residential solar products”.