Spruce Finance secures $130 million loan deal with Investec Plc for 80 MW of residential solar ventures
Solar-financing company Spruce Finance Inc. has hired Investec Plc to arrange a seven-year financing deal of about $130 million in debt for rooftop solar assets.
Spruce Finance is securing the multimillion deal in financing in effort of supporting the development of around 80 megawatts of US rooftop solar assets. According to a source from Bloomberg, Investec is planning to host a bank meeting in about one week from now to decide on the seven-year deal.
This deal is one of the examples of the emerging environmental interest in companies, especially on solar power industries. Spruce Finance, as a solar-financing company backed by Kleiner Perkins Caufield & Byers LLC, is a result of the merging of Clean Power Finance Inc. and Kilowatt Financial LLC. The merger of the two companies was officially closed in December 2015.
The company's mission is to provide financing strategies to empower clients on enviromental improvements. Spruce Finance stated in a release that they want to provide homeowners with simple, affordable financing for residential solar systems, water conservation upgrades and energy efficiency home improvements. It also intends on helping people reduce their gross usage of the natural resources, be it electricity (including heating and cooling), or even water. They are working with a national-range of channel and has contractor partners in 50 states.
As described by the Chief Executive Officer (CEO) Nat Kreamer in PV Magazine, "Spruce is a nationwide one-stop-shop for financing that helps consumers save money on all of their utility bills. We offer solar financing in 18 states and water and energy efficiency home improvement financing in all 50 states."
"Our product breadth, national reach, software platform and networked business model drive growth for our business and create value for everyone we work with," Kreamer added. "And our financial and operational risk management track-record, disciplined compliance and consumer protections enable us to generate attractive investment returns."
Spruce has raised a significant amount of funds from prominent banks and corporations such as US Bank subsidiary US Bancorp Community Development Corporation, one of the many mega tax equity providers in the solar market.
Until now, the US Bank has partnered-up with Spruce Finance to manage an approximate of $175 million of solar systems in the domestic houses of 12 US states.
Investec Plc, on the other hand, is an Irish Bank that has arranged similar deals for Sunrun Inc., including a $250 million financing for residential solar power that closed in January.