Enpal, a Berlin-based company that provides homeowners with renewable energy systems, and the financing for them, is preparing Europe's first publicly rated solar asset-backed securities (ABS) transaction.
Transaction, Golden Ray, will sell €245 million ($264.2 million) in securitization bonds backed by residential solar installment purchases, according to ratings analysts at Kroll Bond Rating Agency. It is also Enpal's inaugural deal.
The transaction will issue notes to investors through eight tranches of class A through F tranches, and a class R piece. The notes will repay investors sequentially, and they
all have a first optional redemption date of Nov. 27, 2029, and a legal final maturity date of Dec. 27, 2057.
The collateral pool consists of 8,469 contracts, as of the October 11 cutoff date. KBRA analysts find that the notes have credit enhancement from a reserve account funded at 0.75% of the initial principal amount in the class A notes at closing. That amount can increase by 0.75% of the class A initial principal balance, funded from principal collections, KBRA said.
Excess spread equals 0.8% annually, the rating agency said.
A1 and A2 notes have initial credit enhancement levels equaling 17.62% of the outstanding balance. The B,C, and D notes have enhancement levels of 12.6%, 8.6% and 6.6%, respectively, KBRA said. The tranche E and F notes have initial credit enhancement levels reaching 5.6% and 0.6%, respectively.
Citigroup Global Markers is the arranger on the deal and Enpal will service the notes. HmcS, Gesellschaft für Forderungsmanagment is the servicer.
KBRA says it assigns ratings of AAA, AA- and A- to the A1, A2 and class B notes, respectively; and BBB, BB+ and B+ to classes C, D and E, respectively.
