Ares EIF-backed resi solar portfolio closes financing

Originally posted on SparkSpread.

An Ares EIF-backed residential solar portfolio has closed financing with a term loan from ING Capital and a solar revenue put with Swiss Re.

kWh Analytics structured the solar revenue put, which backs a 35 MW (dc) residential solar portfolio that comprises 4,000 projects in the U.S. northeast.

Marathon Capital was the exclusive financial advisor to IGS Solar, the developer behind the portfolio.

This is the first U.S. residential portfolio financed with the support of a solar revenue put, according to an announcement from kWh. Solar portfolios supported by a revenue put are able to line up debt packages that are 10% larger on average, the press release said.

“Starting with our initial investments in 2013, we have continued our leading role as a lender to the residential solar space,” Scott Hancock, director at ING, said in a statement. “We are pleased to have incorporated the Solar Revenue Put to support this financing for IGS and Ares.”

Brian Beebe, Head of Origination North America Weather and Energy, Swiss Re Corporate Solutions, said in a statement: “Swiss Re is committed to managing carbon-related sustainability risks and supporting the transition to a low-carbon economy.”

“The Solar Revenue Put represents a new, multi-billion dollar insurtech category,” he added.