SUNPOWER’S SOLAR ASSET-BACKED SECURITIES

Why Is SunPower Planning To Issue Solar Asset-Backed Bonds?

March 13, 2014 (Trefis via Seeking Alpha)

"SunPower (SPWR), one of North America's largest solar companies, intends to issue bonds backed by solar assets later this year…We believe that the bonds, which will be backed by solar leases, could potentially allow the company to tap into a cheaper and potentially larger pool of capital, allowing it to grow its residential solar leasing business…Project financing has proven to be a significant obstacle for solar companies in the past…[but increasing acceptance of solar power has] made solar assets increasingly attractive…[Asset-backed securities pool together power purchase agreements from utility scale plants or residential solar leases, and pass on the payments from these assets to debt investors…SolarCity, a solar system installer, successfully closed a $54 million private placement of bonds backed by residential and commercial solar power contracts in November 2013…” click here for more

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