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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.

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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.

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