Citi and Renew Financial said Monday that they recently closed the first ever asset-backed security  transaction comprised of unsecured consumer energy efficiency loans.

The transaction – in which Renew Financial and Citi issued $12.58 million in securities – creates a new asset class in the form of ABS backed by pools of residential energy efficiency loans. Citi and Renew Financial expect to execute additional transactions over the next several years, firmly establishing a secondary market for these loans to make more capital available for homeowners to fund energy efficiency improvements to their homes. Calvert Investment Management, Inc. purchased the entire issuance.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.