DEBT-FINANCING
Investec plugs gap in US roof-top solar industry
The bank arranged $880m in debt-financing for roof-top solar developers and financiers in 2016
Investec Bank has become the go-to funding source for the US roof-top solar industry just two years after the bank entered the market. Investec arranged $880m in debt-financing for roof-top solar developers and financiers in 2016. Financing for roof-top solar is underpinned by thousands of small contracts with consumers. While the debt is tied to strong individual credit scores, banks have favoured big solar farms because they generally have contracts with investment-grade utilities. Investec had filled the gap by focusing on the roof-top industry’s unique financing needs, said Ralph Cho, the bank’s co-head of power & infrastructure in the Americas. Investec gained market share as roof-top installers and financiers began looking increasingly at bank debt to finance growth. Investec has "carved a good niche in this space", said Thomas Plagemann, chief commercial officer at Lehi, Utah-based Vivint Solar. Bloomberg
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.