AES to issue solar asset-backed security

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Colorado-based AES Distributed Energy has filed documents for a new solar asset-backed security (ABS) deal with the U.S. Securities and Exchange Commission.

According to a report by Reuters, the ABS, which is being issued through Aurora Master Funding, is set to become the first deal backed by solar assets to be sponsored by a utility company.

An ABS is a debt security collateralized by a pool of assets. AES Distributed Energy’s collateral portfolio comprises equipment leases and power purchase agreements relating to 43 MW of solar assets owned through 15 different project companies, according to Reuters. They include municipal, commercial and residential assets.

The news agency reported that there have been only five public solar ABS deals to date totaling $560.5 million — all but one from U.S. market leader SolarCity. The other was issued by SunRun in July.

AES Distributed Energy, formed this year by the AES Corp. after its acquisition of Main Street Power in March, recently completed three solar PV projects totaling 2 MW in Vermont and another in California. AES Corp., A developer of conventional wholesale generation and owner of distribution utilities, AES Corp. holds assets valued at some $39 billion.