Ygrene Announces $280 Million Securitization Transaction

Issued notes received a GB1 (Excellent) rating from Moody’s; most
diversified PACE deal to date

PETALUMA, Calif.–(BUSINESS WIRE)–Ygrene Energy Fund, a national leader in resiliency and clean energy
financing, today announced the completion of a $280 million
securitization transaction. It is the most diversified Property Assessed
Clean Energy (PACE) deal and the largest by Ygrene to date.

The transaction represents the fifth securitization sponsored by Ygrene.
The issuer, GoodGreen 2017-2, has issued three classes of notes,
securitized by a portfolio of mostly residential PACE assets that were
used to finance over 10,600 projects covering resiliency, energy
efficiency, renewable energy and water conservation projects. The
projects are split nearly equally between California and Florida, with
over 94 percent of projects dedicated to residential property
improvements, with the balance for commercial property improvements.
Most notably, over one-third of the projects financed are allocated for
hurricane protection.

“At Ygrene, we believe in putting the consumer first. As demonstrated by
the high percentage of assessments dedicated to hurricane protection,
this begins with making resiliency financing available to a large group
of Americans who might not otherwise be able to add these protections,”
said Ygrene President and CEO, Rocco Fabiano. “Today’s transaction once
again demonstrates the confidence the market has in the PACE asset-class
and in Ygrene. The ultimate outcome of this securitization is a true
win-win: Ygrene offers consumers more choice for important home
improvements, while helping cities become more resilient, create job
growth and meet clean energy goals.”

Moody’s Investors Service (“Moody’s”) has assigned a Green Bond
Assessment of GB1 (Excellent) to the GoodGreen 2017-2 Trust Class A
($244.8 million), Class B ($6.8 million) and Class C ($28.8 million)
Notes, totaling approximately $280 million; with final maturities in
April 2053. Kroll Bond Rating Agency (KBRA) also assigned a preliminary
rating to two classes of notes, noting that the transaction benefitted
from credit enhancement in the form of excess spread,
overcollateralization, a liquidity reserve, an interest reserve and, in
the case of the Class A Notes, subordination of the Class B and Class C
Notes. Morningstar also provided ratings of AAA, A, and BBB,
respectively, being the only agency on the residual note.

Additionally, for the first time in the PACE industry, Ygrene attained a
letter of credit for its liquidity reserve account requirement, allowing
draws on the full amount starting on the first payment date, which is
viewed as a credit positive. The ability to attain this letter of credit
demonstrates another level of investor and lender comfort for PACE and,
in particular, the Ygrene program.

Ygrene currently operates across nearly 470 communities in California,
Florida and Missouri. The program is available to nearly 35 million
Americans and has financed projects for over 41,000 residential and
commercial property owners. Hailed as one of the top 20 “world-changing”
ideas by Scientific American Magazine, PACE financing is an innovative
program that enables property owners to obtain 100-percent financing for
seismic retrofits, energy- and water-saving upgrades, onsite renewable
energy generation projects, hurricane protection and EV charging
stations. Payments are made with property taxes and repaid over terms up
to 20-plus years.

The first payment of the notes will be on April 15, 2018.

About Ygrene Energy Fund

Ygrene Energy Fund is a national leader in residential and commercial
resiliency and clean energy financing. Founded in 2010, Ygrene’s
award-winning, privately funded Property Assessed Clean Energy (PACE)
program is revolutionizing the home improvement industry, making it
easier for property owners to invest in their futures and a healthier
environment. Ygrene is delivering greater choice for home and business
owners by providing accessible and affordable financing for energy
efficiency, renewables, water conservation, storm protection and seismic
upgrades. Recognized as one of the fastest growing asset classes in the
country, PACE has proven to be a successful tool for supporting public
policy initiatives, all without the use of public tax dollars or
credits. To date, Ygrene has provided over $1 billion of private capital
to more than 400 local communities, creating thousands of jobs and
investing millions into local economies across the U.S. Learn more at ygreneworks.com.

Contacts

Media
Ygrene Energy Fund
Joaquin McPeek, 916-599-4166
[email protected]
or
Sloane
& Company
Amanda Coyle, 212-446-1867
[email protected]