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<a href="https://investors.sunrun.com/" target="_blank" rel="noopener">Sunrun</a>, a provider of residential solar energy solutions, has priced $629 million in the securitization of leases and power purchase agreements.
ATLAS SP Partners was the sole structuring agent and served as joint book-runner alongside BofA Securities, Morgan Stanley, MUFG, and TD Securities. First Citizens Capital Securities and ING acted as co-managers for the securitization. This marks the company’s 13th securitization since 2015 and its first issuance in 2025.
The transaction was structured with three classes of A-rated notes and a single class of BB-rated notes, which were retained. The $102 million Class A-1 notes and the $276.5 million Class A-2A notes were marketed in a public asset-backed securitization, while the $250 million Class A-2B notes were privately placed.
The Class A-1 and Class A-2A notes were oversubscribed and carried coupons of 5.99% and 6.41%, respectively. The Class A-1 notes are priced at a spread of 170 bps and a 6.035% yield. The Class A-2A notes are priced at a spread of 200 bps and a 6.465% yield.
Class A-1 and Class A-2A have a weighted average spread of 192 bps, representing an improvement of 42 bps from Sunrun’s 2024-3 asset-backed securitization in September 2024. The initial balance of the Class A notes represents a 65.3% advance rate on the Securitization Share of ADSAB (present value using a 6% discount rate).
The expected weighted average life is 4.58 years for the Class A-1 notes and 7.12 years for the Class A-2A notes. Both classes of notes have an anticipated repayment date of April 30, 2032, and a final maturity date of April 30, 2060.
The notes are backed by a portfolio of 39,458 systems distributed across 20 U.S. states, Washington D.C., Puerto Rico, and 83 utility service territories. The transaction is expected to close by February 5, 2025.
According to Mercom’s recently released Annual and Q4 2024 Solar Funding and M&amp;A <a href="https://cms.mercomindia.com/product/annual-and-q4-2024-solar-funding-and-ma-report/" target="_blank" rel="noopener">report</a>, in 2024, announced debt financing came to $18.8 billion, 6% lower than $20 billion in 2023. Securitization deals were a key contributor, with a record $5 billion in 16 deals.
In July last year, d.light, a provider of off-grid solar solutions, closed a securitization facility to <a href="https://cms.mercomindia.com/off-grid-solar-company-d-light-secures-176-million-securitization-facility/" target="_blank" rel="noopener">purchase</a> $176 million of receivables in Kenya, Tanzania, and Uganda. Africa Frontier Capital, a social impact-focused asset management company, provided the funding.

Sunrun Prices $629 Million in Senior Securitization

<a href="https://srenergy.com/" target="_blank" rel="noopener">Summit Ridge Energy</a>, a community solar project owner and operator, secured $275 million from the global financial services company Mitsubishi and United Financial of Japan Group (MUFG). The capital expands their existing partnership and will be used for project construction and term debt financing.
It is expected to enable Summit Ridge Energy to expand its operations further and execute a community solar pipeline in Virginia and Illinois.
The $275 million upsize adds to the existing $100 million partnership between Summit Ridge Energy and MUFG.
“We are pleased to double-down on our partnership with MUFG, who we see as one of the premier financial institutions operating in this space, especially in this challenging debt market,” said Brian Dunn, Chief Operating Officer at Summit Ridge Energy. “We know we can count on MUFG’s ability to scale with our significant and growing pipeline.”
The two new debt facilities from MUFG will support the construction of up to 15 solar projects in Illinois and 15 in Virginia. It will also provide permanent financing to the new solar projects in Virginia, with 75 MWdc capacity, planned for construction in 2024.
In Illinois, the company plans to add 45 MWdc to the existing fleet of 250 MWdc using the financing.
These projects are expected to provide bill credits to about 13,000 homes and businesses and deliver energy savings to low-income residents and commercial customers.
“MUFG is proud to expand our partnership with Summit Ridge Energy, the leading player in the North American commercial solar market,” said Takaki Sakai, Managing Director of the Project Finance Team in the Americas at MUFG. “We were impressed with Summit Ridge Energy’s capability to develop competitive and well-structured projects. We are excited that Summit Ridge Energy is aiming to play a further role in this field by scaling up the business and look forward to continuing to support its growth.”
Last Year, the company <a href="https://cms.mercomindia.com/summit-ridge-energy-secures-strategic-investment-apollo-funds/" target="_blank" rel="noopener">secured</a> a $175 million strategic investment from Apollo Funds, a global investment management firm.
According to Mercom’s 9M and Q3 2023, Solar Funding and M&amp;A <a href="https://cms.mercomindia.com/product/9m-q3-2023-solar-funding-ma-report/" target="_blank" rel="noopener">Report</a> announced large-scale project funding in the first nine months of 2023 came to $27.5 billion in 169 project funding deals, a 20% increase compared to $22.9 billion in 128 projects in 9M 2022.
Recently, Leeward Renewable Energy, a solar, wind, and energy storage project developer, <a href="https://cms.mercomindia.com/leeward-renewable-energy-secures-financing-for-solar-and-wind-projects/" target="_blank" rel="noopener">closed</a> $580 million of tax equity commitments and debt facilities for its White Wing Ranch Solar and GSG Wind projects in Yuma County, Arizona, and LaSalle County, Illinois.

Community Solar Firm Summit Ridge Energy Secures $275 Million

<a href="https://navisunllc.com/" target="_blank" rel="noopener">Navisun</a>, an independent power producer, secured up to $235 million in debt financing through two facilities. The funding will support the company’s growth strategy, allowing it to execute its project pipeline of distributed and small utility-scale solar and storage projects across the United States.
The first facility is a $105 million, five-year revolving construction credit facility, which includes a letter of credit facility. In addition, the financing incorporates an up to $50 million accordion feature allowing the company flexibility to upsize as its portfolio grows.
The second facility is an up to $130 million, five-year term loan facility, which includes a letter of credit facility and a delayed-draw term loan. The facility also consists of an up to $75 million accordion feature.
“The ﬁnancing facilities we have secured provide us with the necessary capital to continue to innovate and expand our portfolio of solar and storage projects while also delivering reliable and affordable energy solutions to our customers. We look forward to working with our ﬁnancing partners as we continue to scale our business,” said Doug Johnsen, managing partner and co-founder of Navisun.
The funding was led by MUFG, which acted as an administrative agent, issuing bank, and coordinating lead arranger. Export Development Canada served as the mandated lead arranger for both facilities. Wells Fargo Bank also acted as the mandated lead arranger for the second facility. Wilmington Trust acted as a collateral agent and a depository for both facilities.
Founded in 2017, Navisun acquires, co-develops, constructs, finances, owns, and operates distributed and small utility-scale solar and storage projects, usually between 1 MW to 30 MW.
In November 2021, Navisun was <a href="https://www.globenewswire.com/news-release/2021/11/02/2325123/0/en/OMERS-Infrastructure-Signs-Agreement-with-Ares-Management-to-Acquire-100-of-Navisun-LLC-Signals-Entry-into-Distributed-Generation-Space.html" target="_blank" rel="noopener">acquired</a> by OMERS Infrastructure, a global infrastructure investor and investment arm of OMERS pension plan, from a fund managed by Ares Management Corporation.
According to Mercom Annual and Q4 2022 Solar Funding and M&amp;A <a href="https://cms.mercomindia.com/product/annual-q4-2022-solar-funding-ma-report/" target="_blank" rel="noopener">report</a>, in 2022, announced debt financing came to $12 billion, a 24% decline compared to $15.8 billion raised during 2021. Securitization activity was a key contributor, with $3.1 billion in 12 deals.

Navisun Secures $235 Million Debt for Solar and Storage Projects in the US

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					</table>Adani Green Energy (<a href="https://www.adanigreenenergy.com/" target="_blank" rel="noopener">AGEL</a>), through its subsidiary Adani Solar Energy AP Six, has raised a project loan facility of ¥27.95 billion (~$205.31 million) to help refinance its debt.
The facility includes amortizing project loans, a 16-year debt structure with a door-to-door tenor of ten years and an average tenor of more than eight years.
It is supported by AGEL’s association with its two core relationship banks– <a href="https://www.bk.mufg.jp/global/" target="_blank" rel="noopener">MUFG Bank</a> and <a href="https://www.smbc.co.jp/global/" target="_blank" rel="noopener">Sumitomo Mitsui Banking Corporation</a>, who acted as principal lenders for the facility with equal participation.
The facility is linked to a Japanese benchmark rate gauge &#8211; the Tokyo Overnight Average Rate, with close to zero yields, highlights the appeal to diversify the alternative capital pools providing relatively competitive interest rates.
Adani Green aims to have access to long-term capital without impacting its growth assets and continue to look at multiple alternative pools of capital like this one to fund its contribution to India’s clean energy transition.
The company stated that the refinancing facility is consistent with its strategy of securing long-term financing for establishing the debt structure in conformity with the underlying life for its operational assets.
Phuntsok Wangyal, CFO of Adani Green Energy, said, “The facility demonstrates AGEL’s pro-active and continued approach to access liquidity against the backdrop of a challenging interest rate environment in the broader markets, providing the long-term solution. With lower benchmark rate, lesser margin, and historically low swap rates, this provides significant flexibility and a competitively priced funding solution for AGEL’s high-grade renewable asset portfolio.”
Latham &amp; Watkins LLP and Cyril Amarchand Mangaldas acted as legal counsel for the transaction.
Adani Green Energy <a href="https://mercomindia.com/adani-greens-profits-up-50-yoy-in-q2-fy23/" target="_blank" rel="noopener">recorded</a> cash profits of ₹6.01 billion (~$73.98 million) in the second quarter of the financial year 2023, a 50% YoY increase, attributed primarily to the increased sale of power.
Early this year, the company also <a href="https://mercomindia.com/adani-green-to-receive-500-million-of-ihcs-2-billion-investment/" target="_blank" rel="noopener">received</a> an investment of $500 million from the Abu Dhabi-based public joint-stock company International Holding Company PJSC (IHC) out of the total investment of $2 billion in three of Adani Group’s companies.

Adani Green Raises a Yen-Denominated $205 Million Facility to Refinance Debt

Mitsubishi UFJ Financial Group (<a href="https://www.mufg.jp/english/index.html" target="_blank" rel="noopener">MUFG</a>) has announced the completion of a five-year syndicated financing deal of $163 million for <a href="https://www.azurepower.com/" target="_blank" rel="noopener">Azure Power</a>&#8216;s 300 MW solar project. The project is being developed in Rajasthan.
MUFG also acted as a lead manager, hedging bank, facility agent, and bank issuing line of credit. With this latest transaction, MUFG secured certification for a total renewable capacity of 2.6 GW over the past six months. The deal is also MUFG&#8217;s third renewable project financing, where it acted as a green structuring advisor.
Colin Chen, Head of ESG Finance for Asia-Pacific, MUFG, said, &#8220;Having played leadership roles in a string of renewable project financings in India, we are even more convinced of the exciting prospects in the country&#8217;s renewables sector. We look forward to further harnessing our project financing and ESG expertise to support India&#8217;s sustainability aspirations.&#8221;
In its investor’s presentation last year, Azure had noted that financing for 1,290 MW of its projects under construction projects including the Assam 1 (90 MW) and Rajasthan 6 (SECI 600 MW) projects have debt funding in place. Azure had said that they had a commitment from EDC, Societe Generale, and MUFG Bank for the debt funding of the Rajasthan 8 (SECI 300 MW) project, and financing documentation and due diligence were in process.
In March 2021, MUFG – with 11 other international banks – also <a href="https://mercomindia.com/adani-green-secures-1-35-billion-debt-financing/" target="_blank" rel="noopener">committed</a> $1.35 billion in debt package for Adani Green Energy&#8217;s under-construction renewable asset portfolio. It was one of the largest revolving project financing deals in the renewable sector in Asia. The finance facility would initially fund 1.69 GW of solar-wind hybrid projects being set up in Rajasthan.
According to <a href="https://mercomindia.com/product/india-solar-project-tracker/" target="_blank" rel="noopener">Mercom India Solar Project Tracker</a>, Azure has 2 GW of operational solar capacity and 950 MW in the pipeline.
As per Mercom&#8217;s <a href="https://mercomcapital.com/product/q1-2021-solar-funding-ma-report/" target="_blank" rel="noopener">Q1 2021 Solar Funding and M&amp;A Report</a>, close to 7.4 GW of large-scale solar projects received funding in Q1 2021 with 67 investors that participated in deals. Announced large-scale project funding in Q1 came to $4.2 billion in 41 deals compared to $4.9 billion in 46 deals during Q4 2020. In a year-over-year comparison, $2.7 billion was raised in 31 deals in Q1 2020.
Mercom had earlier <a href="https://mercomindia.com/azure-sells-non-core-rooftop-solar-radiance/" target="_blank" rel="noopener">reported</a> that independent solar power producer Azure Power Global had announced that it had signed a binding agreement to sell its non-core rooftop solar portfolio to Radiance Renewables for ₹5.36 billion (~$73.5 million).

Azure Power Secures $163 Million Debt Funding for its Solar Project from MUFG

The National Thermal Power Corporation (NTPC), a government-owned power utility, has priced its second, rupee-denominated five-year masala bond offering for Rs.20 billion (~$311.5 million), in the international markets on April 25, 2017. In doing so, the state-run power generator became the only state-owned enterprise to tap the Masala Bonds market twice.
This is the eighth offering under the company’s $4 billion (~Rs.256.8 billion) Medium Term Note (MTN) program since it was set up in 2006, taking the cumulative amount raised under the program to nearly $3.46 billion (~Rs.222.16 billion).
Given NTPC’s strong credentials in the International Bond Market, the issue was oversubscribed with participation of more than 40 accounts. Based on the strong order book, the notes have been priced at a coupon of 7.25 percent payable annually.
The five-year senior unsecured masala bonds of NTPC have been issued at the lowest yield for any masala bond by an Indian issuer to date and have been priced within AAA Corporate Bonds of equivalent tenor in the domestic market.
The company intends to use the proceeds of the issue to finance its ongoing and new power projects within India. Axis Bank, Barclays Bank, ICICI, MUFG, and Standard Chartered Bank were the bookrunners for the offering. These bonds will be listed on the Singapore and London Stock exchanges.
Mercom <a href="https://mercomindia.com/ntpc-upsizes-medium-term-note-program-6-billion/" target="_blank" rel="noopener noreferrer">previously reported</a> that the NTPC recently upsized the MTN program to $6 billion (~385.5 billion). Mercom also reported, in March 2017, that the NTPC raised <a href="https://mercomindia.com/ntpc-raises-rs-20-billion-305-million-green-masala-bonds/" target="_blank" rel="noopener noreferrer">Rs.20 billion (~$305.47 million)</a> through the issuance of green masala bonds in the overseas market.

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