Sunrun looks to diversify with debut ABS

摘要

Sunrun plans to price a debut solar panel-backed ABS bond this week as it looks to diversify its financing options ahead of an expected cut in tax benefits. Credit Suisse is leading the US$THm deal backed by 8,000 residential solar system leases, which cost on average US$23,000 each, but aim to cut customers' electricity bills by a fifth over a 20-year period. Sunrun is only the second solar company to test the market with a rated ABS deal. It is following in the footsteps of SolarCity, which has raised US$326m over the past two years from three securitisations. The ability to securitise leases is becoming increasingly important for companies such as SolarCity and Sunrun, as a 30% tax credit under the federal government's 2006 solar Investment Tax Credit (ITC) programme will fall to 10% in 2017.