Redaptive, Rabobank and Energetic Insurance reveal $50M partner-driven effort to support energy efficiency projects
Energetic Insurance and Rabobank work to expand Redaptive’s diverse customer base with credit insurance to support $50 mln credit facility
New York, NY (November 21, 2022) – Redaptive, a San Francisco-based Energy-as-a-Service provider of energy-saving and energy-generating equipment, has announced the start of a three- company partnership designed to enhance its capability to promote a 1,000+-site portfolio of energy efficiency projects and support future pipeline development.
The innovative credit insurance structure, a first in the market, enables Redaptive to secure competitive financing from Rabobank, the leading global food and agribusiness bank and leader in energy transition and renewable energy structuring. The transaction benefits from EneRate Credit Cover® available exclusively through Energetic Insurance, which issues credit insurance policies as a Managing General Underwriter (MGU) on behalf of an AA-/Aa3 rated global insurer.
The $50 mln Rabobank credit facility finances Redaptive’s continuing effort to align its energy efficiency upgrades with growing demand from commercial and industrial (C&I) customers to reduce energy consumption. Energetic’s credit insurance product will enable the facility to include a more diverse portfolio of credit counterparties and provide enhanced optionality for term financing. Growing corporate demand for energy efficiency prompted Rabobank and Redaptive to seek credit enhancement from Energetic to allow the build-out of Redaptive’s customer base to be included under the financing.
“We are seeing an increased demand for solutions around energy efficiency. As more corporations implement ESG goals and make them a focus of both long- and short-term growth strategies, it is essential that those solutions are made available,” said Matt Gembrin, CFO of Redaptive. “By working with an innovative lender in Rabobank, and benefiting from Energetic’s unique credit insurance platform, we are able to expand the potential pool of end customers to include a more full representation of the credit sector.”
Credit profiles are a key barrier to financing C&I energy efficiency projects and the coverage offered by Energetic allows an overall lower cost of capital for Redaptive, at the same time increasing portfolio diversification. The credit insurance allows an increased percentage of non- investment grade counterparties to be included in the portfolio.
“One of the biggest barriers to achieving scale in the energy efficiency sector is the structuring challenge posed by unrated and sub-investment credit risks. Energetic Insurance helped us manage diverse credit risks and has allowed us to increase the size of the Redaptive funding at competitive terms and offer refinancing optionality,” said Claus Hertel, Managing Director, Project Finance Americas at Rabobank.
“We are thrilled to partner with Redaptive and Rabobank to demonstrate the benefits of the EneRate Credit Cover policy, now in the energy efficiency sector. No individual or company should be locked out of the market or left unable to move forward on climate solutions due to a lack of financing,” said James Bowen, CEO of Energetic Insurance. “The momentum most recently created from the Inflation Reduction Act (IRA) will increase project demand from corporates and non-profits and many will require credit enhancement to obtain financing.”
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NOTE: This Press Release does not constitute and is not intended by Energetic Insurance or any of the entities mentioned in this release to constitute a solicitation for any insurance business.
About Redaptive (www.redaptive.com)
Redaptive is an Energy-as-a-Service provider that funds and installs energy-saving and energy- generating equipment. Redaptive’s programs help many of the world’s most sophisticated organizations reduce energy waste, save money, lower their carbon emissions and meet their sustainability goals across their entire real estate portfolios. With Redaptive, customers can overcome capital and contractual barriers to achieve energy-saving benefits quickly, all with real-time data powered by International Electron, Redaptive’s in-house Data-as-a-Service metering platform. Redaptive was founded in 2013 and is headquartered in San Francisco, CA. For more, visit https://redaptiveinc.com/.
About Rabobank (www.rabobank.com)
Rabobank Group is a global financial services leader providing wholesale and retail banking, leasing, and real estate services in more than 38 countries worldwide. Founded over a century ago, Rabobank today is one of the world’s largest banks with over $765 billion in assets. In the Americas, Rabobank is a premier bank to the food and agriculture industry, as well as a leading project financier of solar, wind, bioenergy, and energy infrastructure projects, providing in-depth knowledge and expertise as well as full arranging, underwriting and syndication capabilities.
Rabobank has financed more than 6GW of renewable energy projects to date and is dedicated to supporting the financing of the energy transition and new clean technologies. Additional information is available on our website or on our social media platforms, including Twitter and LinkedIn.
About Energetic Insurance (www.energeticinsurance.com)
Energetic Insurance is a Managing General Underwriter that has developed new risk management products to unlock exponential growth in the renewable energy industry. EneRate Credit Cover® policies unlock renewable and energy efficiency project financing for unrated and below investment grade counter parties by covering counterparty credit risk. EneRate Credit Cover® was selected by Insurance Insider Magazine as the “New Underwriting Product of the Year” for 2020. Headquartered in Boston, Energetic Insurance was awarded a SunShot Prize from the US Department of Energy in 2017 and has received a total of $12.5 million in venture capital financing to date. EneRate Credit Cover™ and other insurance policies are issued by RE3 Energetic Insurance Solutions, LLC, or SiKey Insurance Services, LLC in New York, wholly- owned subsidiaries of Energetic Insurance, Inc. Energetic Insurance complies with all state- mandated regulations for surplus line insurance brokers and is licensed as a surplus lines broker in Massachusetts with License #: 2053916.