Solar Loans Firm Goodleap Announces 15th Securitisation of Its Loans

GoodLeap, LLC, a leading digital marketplace for sustainable home solutions in the US has announced the closing of GoodLeap Sustainable Home Solutions Trust 2022-4, the 15^th securitization of loans originated by GoodLeap. Lime Residential, Ltd. (a Credit Suisse affiliate) sponsored the transaction and Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., and Goldman Sachs & Co. LLC served as joint bookrunners. The transaction is backed by $390 million of solar and sustainable home efficiency loans originated on the GoodLeap platform. The securitization received ratings from S&P Global Ratings and Kroll Bond Rating Agency.

GoodLeap’s proprietary technology platform supports more than 40,000 sustainable home improvement sales professionals at the point-of-sale, creating an efficient option for financial institutions to deploy their capital in high-performing ESG assets. Since 2018, GoodLeap has transacted more than $19 billion in loans on its platform.

The thriving market for lending in the solar space has been a key driver of solar growth in developed markets, especially the US, Australia and more. There is a lesson there for India, where solar funding is still picking pace, and has been beset with many issues so far. Financial institutions are still warming up to the opportunity, with many questions around security of assets, asset quality, loan tenures, interest rates and more. There is probably a case for making solar loans a part of priority sector lending to change the narrative here, and ensure the country’s ambitious goals for adding solar capacity are met.

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With one of the more developed financial markets worldwide today, institutions will probably move on to loan securitisation here too, once they get a better understanding of solar financing and build up large enough portfolios. The possibility of these portfolios being picked up for ‘green’ portfolios also makes it an intriguing prospect.