Amalgamated buys loan portfolio tied to energy efficiency projects
Amalgamated Bank in New York has reached a deal to continues its mission to provide socially responsible financing.
The bank said in a press release Thursday that it bought $45 million of residential Property Assessed Clean Energy, or PACE, financings. PACE programs allow property owners to finance upfront costs of energy efficient property improvements, then pay the costs back over time through a voluntary assessment.
The bank did not disclose the seller or the price it paid.
The PACE loans Amalgamated bought should help about 2,000 California and Florida homeowners become more energy efficient. The bank serves socially responsible and mission-driven companies and individuals.
“Amalgamated is deeply committed to creating a more sustainable world — whether that is relying on renewable energy for our own operations or ensuring that our financing activity contributes to a greener future,” President and CEO Keith Mestrich said in the release.
“PACE financing is a valuable tool that provides property owners with a greater ability to make energy efficient improvements," Mestrich added. "We are pleased to have closed this deal and to continue building our book of sustainable and socially responsible financings.”
Last year the company launched an initiative to provide at least $700 million in socially responsible financing by 2020, doubling the bank’s impact in areas such as environmental protection, health and wellness, education and sustainable commerce.
The costs of PACE improvements are linked to the property, which are meant to help individuals who are weighing the long-term value of energy efficient home improvements when the length of their homeownership is unknown, Amalgamated said.
Eligible improvements through the PACE programs include renewable energy systems and energy efficiency upgrades such as air sealing and insulation, Energy Star products, water conservation and resiliency measures, and rooftop solar panels.