Sunrun, a residential solar company in the U.S., has closed $195 million in financing from Investec Bank.
The financing, in the form of senior credit facilities and subordinated facility, will be used to support Sunrun’s residential solar business in the U.S. The senior facilities amount to $171 million, while the subordinated facility amounts to $24 million.
The investment marks the company’s first syndicated financing, according to officials at Sunrun.
The financing is expected to reduce Sunrun’s cost of capital, which will help the company lower the cost of residential solar projects for its customers, said Jason Cavaliere, VP of Project Finance at Sunrun.
“The strength of our project portfolio and operating history, among other factors, allowed us to achieve a lower interest rate and longer tenor than any publicly announced residential solar backleverage facility,” Cavaliere added.
Mike Pantelogianis, co-head of Power at Investec, said, “We have established a cost effective financing solution that leverages long-term cash flows to support the long term growth of Sunrun’s business.”
The financing reinstates Sunrun’s growing focus in U.S. residential solar market. Recently Sunrun appointed Canadian Solar as its qualified solar vendor for their Sunrun home solar system through AEE Solar.
Rajani Baburajan