DSD Renewables (DSD) has received $155 million in loans for the first commercial and industrial (C&I) solar asset-backed securitization (ABS) with a high concentration of community solar assets. Credit Suisse Securities (USA) LLC negotiated and underwrote the deal, which represents DSD’s first issue of asset-backed securities.
Solar asset-backed securities are a rising possibility for investors to deploy capital into renewable energy at scale by packaging assets originated by solar developers into different portfolios. DSD’s ABS portfolio comprises of about 56% onsite solar and 44% community solar projects spanning 11 states, including C&I and distributed generating projects, with off-takers benefiting from lower electricity costs and state solar incentive schemes.
What Does DSD Renewables Do?
Distributed Solar Development, LLC (DSD Renewables) is changing the way businesses harness clean energy while also paving the road for a more sustainable future. DSD speeds the deployment of renewable energy resources and delivers considerable value for our commercial, industrial, and municipal customers and partners through exceptional capabilities such as development, structured finance, project acquisition, and long-term asset ownership. Our team delivers a rare combination of inventiveness, discipline, and responsibility to every project we manage, buy, own, and operate, backed by world-leading financial partners such as BlackRock Real Assets and based in our founding at GE.
The funding will be used to pay down current debt on DSD’s assets and to support its business expansion in project origination and acquisitions. Credit Suisse served as the transaction’s Sole Structuring Agent and Sole Bookrunner. DSD was represented by Sidley Austin LLP, and Credit Suisse was represented by Mayer Brown.
DSD has collected more than $1.5 billion in finance to date to support its growth and speed solar project deployment. Every six to twelve months, DSD wants to issue asset-backed securities.