Berlin, 01.11.2024– Enpal, pioneer in Germany’s energy transition and market leader in rooftop solar systems and heat pumps, announces today the successful pricing of its highly anticipated securitisation program, the first public residential solar asset-backed securitisation (ABS) in Europe. The debut transaction totals €240 million, positioning Enpal once more at the forefront of renewable energy financing in the European market.
Enpal has placed a portfolio of approximately 8,500 residential solar system loans in Germany, representing a total of c. 21,500 Distributed Energy Resources[1](DER’s). This debut transaction of €240 million, labelled “Golden Ray – 1”, is issued as Green Bond and rated by Moody’s and KBRA. The tranching and pricing are as follows:
The Class A1 note is guaranteed by the European Investment Fund (EIF).
“The launchof the program is a groundbreaking achievement for both Enpal and the European renewable energy sector. The main obstacle for this asset class so far has been the aggregation of sufficient volume, although demand from investors has existed for a long time. Over the past few years, we have scaled our operations and set new industry benchmarks, transforming residential solar into a highly attractive and investable asset class for the global financial markets. The investor demand of this deal has widely surpassed our expectations with tranches being oversubscribed up to six times. This lays an excellent foundation for future growth and scalability”, comments Gregor Burkart, Headof Enpal’s Refinancing Division.
“We hope that this transaction will not only benefit Enpal and its customers, but will pave the way for our whole industry to use embedded financing and securitisation as a tools in the fight against climate change," added Béla Schramm, Director Securitisation.
"This transaction shows how the private sector can play a leading role in the energy transition. Homeowners are enabled to equip their homes with renewable energy without the usual high upfront costs. It is a win-win situation for both sides: families can reduce their carbon footprint and energy costs, while investors can benefit from a growing market driven by the EU's renewable energy targets", adds Viktor Wingert, Enpal Co-Founder and Chief Investment Officer.
Securitisation programs are well-established in Germany, particularly in sectors such as car loans, but this marks the first time a public ABS transaction has been executed for residential solar energy. Entering the public capital markets not only diversifies Enpal's asset funding sources, but also gives the company access to larger pools of capital and better terms.
The transaction was led and structured by Citi as sole arranger, with Citi, Barclays, Bank of America, and Crédit Agricole CIB acting as joint lead managers. The"Golden Ray" program follows the standards defined in the International Capital Market Association’s (ICMA) Green Bond Principles. ISS Corporate Solutions (ICS) has issued a Second Party Opinion (SPO) confirming the eligibility of the security as a Green Bond. The transaction is certified by SVI as a securitisation meeting the requirements for simple, transparent and standardised securitisation (STS). The program is designed to support further issuances. 18 investors have allocated orders in a book-building exercise and the securitised notes will be publicly traded and cleared on the Luxembourg Stock Exchange.
About Enpal
Enpal, the greentech unicorn in Germany, offers an integrated solution for renewable energy and is a pioneer in Germany's energy transition. As a leading provider of solar and heat pump systems, the company has already integrated ca. 250,000 Distributed Energy Resources (DER) into the Enpal system. The PV system is part of an integrated energy ecosystem consisting of a battery storage system, an EV-charging station, a heat pump and the Enpal energy manager Enpal.One, an intelligent combination of hardware and software. Founded in 2017, Enpal has digitized and revolutionized the purchase of green energy for a fossil-free home with its rental model and flexible, no-down-payment purchase option. More than 80,000 Enpal-equipped households already make up our climate-friendly renewable energy community. Enpal’s investors include some of the world’s largest impact and technology investors, such as TPG Rise Climate, The Westly Group, Activate Capital, Softbank Vision Fund II, Princeville Climate Technologies, HV Capital, Team Europe, and Picus Capital.
Press contact
Boris Radke
Chief Communications Officer
[1] PV-systems, batteries, and EVchargers
