Loanpal solar loan ABS closes record deal

Loanpal, which last month launched its third securitization of consumer loans for residential solar-panel installations, closed the $347 million deal Monday to record the largest-ever collateral pool for a solar loan asset-backed transaction to date.

According to a company release, Loanpal (formerly known as Paramount Equity Mortgage) priced three classes of notes that are secured by consumer payments on $434 million in outstanding balances on nearly 12,000 loans originated by Loanpal and sold to Goldman Sachs, Blackstone Credit and Goodfinch.

Loanpal Solar Loan 2020-3, sponsored by Goldman, includes a single-A rated senior tranche of Class A notes, as assessed by Kroll Bond Rating Agency in line with deals from several other issues such as Vivint Solar and Sunnova Corp.

The deal is among four to close during the fourth quarter to propel the market to a volume of $2.36 billion across nine deals in new issuance in 2020. That tops the previous yearly high mark of $2.27 billion in 2018, showcasing the “resilience” of the sector despite the economic disruption of COVID-19.

"The market for sustainable home improvement products is estimated to be worth more than $100 billion in 2021. Access to efficient financing for those products will be a key driver for the sector and the clean energy industry overall," said Loanpal president and chief investment officer Tanguy Serra, in a release.