French bank Natixis has agreed to provide ReNew Financial with a $200 million revolving credit facility to further its residential PACE financing programme in the US.
The debt agreement will provide property-assessed clean energy (PACE) loans for up to 7,000 homes, when the facility is fully drawn. The loan has a two-year maturity but is structured as a revolver, and ReNew said it will periodically refinance the line and borrow from it again.
ReNew chief financial officer Kirk Inglis said in a statement the credit facility would see the California-based finance company transition from “being a PACE asset originator to being a PACE asset owner”.
“As an owner of assets, we now have access to a variety of financing options that we can utilise to lower our cost of capital and drive profitability,” Inglis said.
The PACE programme allows property owners to use loans for energy efficiency and renewable energy projects and repay them through property taxes. The programme began in California, but has been replicated by numerous companies in 31 states.
Cisco DeVries, ReNew’s chief executive, created the PACE financing model and founded ReNew in 2008. In June, the company completed a $123 million securitisation backed by PACE-financed homes. DeVries said the packaging of loans provides ReNew “permanent capital” to pay for 4,800 PACE projects.
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