The Solar Revenue Put, which is backed by Swiss Re Corporate Solutions, a division of global reinsurer Swiss Re, has supported the refinancing of kWh Analytics’ portfolio of 41 projects.
Structured as a parametric insurance policy on solar production and revenues, the Solar Revenue Put serves as a credit enhancement for financial investors.
Capacity for the solution is provided by Swiss Re Corporate Solutions while the refinancing supported by the Solar Revenue Put includes a portfolio of 41 projects, amounting to approximately 28 Megawatts (MW) of Direct Current (DC), located in Arizona and Massachusetts.
The facility is managed by a subsidiary of The AES Corporation, AES Distributed Energy, and the portfolio is being funded by Silicon Valley Bank and a Japanese financial services company.
Brian Cassutt, Chief Financial Officer (CFO) at AES Distributed Energy, said: “AES Distributed Energy is focused on helping our customers affordably and reliably meet their sustainable energy needs, and strategically-timed refinancings enable us to re-deploy capital to build more clean energy projects.
“The Solar Revenue Put will help sharpen our competitive edge by enhancing our returns and reducing our downside risk.”
Bret Turner, Managing Director and Market Manager of Project Finance at Silicon Valley Bank, added: “We’re pleased to continue our support of AES Distributed Energy as they deploy innovative distributed solar and energy storage projects.
“The strong collaboration between SVB, the Japanese financial services company, and kWh Analytics enabled us to deliver a transformational financing for AES DE and the market.”
According to a recent survey of the most active lenders in the solar industry, over 40% of active lenders value the Revenue Solar Put as a credit enhancement.