$421 million of Loanpal Residential Solar Loans Securitized

Loanpal, a leading point-of-sale technology platform for sustainable home solutions, today announced that Goldman Sachs sponsored Loanpal Solar Loan 2021-2 Ltd. and Loanpal Solar Loan 2021-2 LLC have closed a securitization of approximately $421 million worth of residential solar loans originated on the Loanpal platform and previously purchased by Goldman Sachs, GoodFinch, Blackstone Credit and Davidson Kempner Capital Management LP. The senior tranche of the securitization was priced at 115 bps over swaps, marking it as the lowest spread to date on a tranche of Loanpal originated loans and the lowest ever new issue spread on a 3+ year WAL solar bond.  Goldman Sachs & Co. LLC and Credit Suisse acted as Joint Bookrunners on the securitization.

“We are excited to announce the second securitization of Loanpal loans in 2021 and proud to be expanding access to sustainable home upgrades that improve lives, create jobs and benefit society, while delivering attractive yields and business growth to our partners,” said Loanpal President and Chief Investment Officer Tanguy Serra. “Our ongoing education efforts have led to substantial demand in a crowded market, resulting in 25+ unique investors participating in this transaction with a 2X over subscription in all classes within the securitization.”

Loanpal leverages its deep expertise in technology and data 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 more than $6 billion of solar loans and other home efficiency loans through its platform since 2018, empowering over 185,000 families to take steps that reduce their carbon footprint.

This securitization, sponsored by Goldman Sachs, consists of a total of $343.4 million of three classes of notes rated by Kroll Bond Rating Agency. The weighted average coupon rate on the rated notes, is 2.39%. At the time of originations, the weighted average FICO score of the loans was 744.

“This latest clean-energy securitization brings greater investor access to the sustainable investment market and we are looking forward to the continued success of this asset class as it reaches maturation,” said Katrina Niehaus, Head of Corporate Structured Finance Investment Banking at Goldman Sachs.