#United States #Denver #Securitization #Energy-as-a-Service #Redaptive

Redaptive's Groundbreaking Securitization Financing

In a significant move within the energy financing landscape, Redaptive has recently closed a remarkable financing round amounting to approximately $216 million. This funding marks the inaugural Energy-as-a-Service (EaaS) asset-backed securitization supported by performance contracts from leading Fortune 500 companies in the commercial and industrial sector. The deal was structured and underwritten by Deutsche Bank Securities Inc., marking a pivotal moment in how infrastructure financing evolves in the modern era.

A New Era of Financing for Energy Efficiency

The importance of this asset-backed securitization (ABS) cannot be overstated. It opens new avenues for institutional investors by allowing them to gain extensive exposure to energy-efficiency and decarbonization projects at scale. Specifically, this financing structure allows for the aggregation of verified service payment streams into diverse portfolios. Investors are provided with scalable opportunities that yield reliable cash flows akin to traditional infrastructure investments.

Redaptive’s approach creatively combines long-term EaaS contracts with support for critical systems like lighting and HVAC across numerous sites belonging to commercial and industrial clients in multiple states. This not only assures budget stability for these clients but also enables them to experience reduced energy and maintenance costs, thereby improving their overall operational efficiency.

Matt Gembrin, the Chief Investment Officer at Redaptive, emphasized the significance of this transaction, calling it a game-changer for capital generation backed by Redaptive’s innovative infrastructure monetization platform. He highlighted that the sophisticated structure of this securitization connects project-level energy efficiency investments to capital markets, showcasing a scalable model for financing sustainable infrastructures.

Bridging the Gap with Data-Driven Approaches

As Redaptive ventured into uncharted territories with this new asset class, diligent collaboration among its capital markets, underwriting, and legal teams was crucial. They worked alongside external lawyers and consultants to provide education to the investor community regarding the EaaS contract structures. The success of this endeavor involved assessing obligor risk and contract mechanics through a data-driven methodology, which is likely to simplify future issuances and create a blueprint for other potential issuers aiming to access the term debt market.

Currently, the pool of EaaS contracts from Redaptive awaits final ratings from the Kroll Bond Rating Agency. This evaluation process includes a thorough investigation of cash flow predictability and the operational performance of the asset pool. Factors considered include the quality of project development and installation, adherence to service standards, and historical performance records.

Commitment to Sustainable Transformation

As the world shifts toward more sustainable energy practices, Redaptive plays a pivotal role in redefining how energy and infrastructure initiatives are financed, delivered, and scaled. Through its unique 'Infrastructure Monetization' model, Redaptive tends to unlock accumulated value within buildings and diverse portfolios, replacing the traditional capital-intensive, reactive upgrades with scalable solutions focused on tailored financing and tangible outcomes.

Founded in 2015 and operating from its headquarters in Denver, Colorado, Redaptive is dedicated to assisting organizations in lowering risk, diminishing total ownership costs, and fostering enterprise value creation. This transformative approach converts infrastructure from a limitation into a powerful catalyst for growth.

For further details and the latest updates on Redaptive's initiatives, visit redaptive.com.