Mosaic is continuing to earn the trust of substantial financers for its business model, as it announces another huge financing facility that it will use to provide solar loans to homeowners across the U.S. It is the third such facility that the company has secured this year, after slightly smaller amounts made available from different financers in April and in August.
Deutsche Bank acted as the arranger and administer of the USD 250 million warehouse facility. When added to recent company upsizes, this facility will allow Mosaic a new loan funding capacity of USD 550 million, giving it an enviable position in the U.S. residential solar market.
“More and more homeowners are looking for an effective path to energy savings,” commented Mosaic founder and CEO Billy Parish. “The credit facility with Deutsche Bank provides meaningful capacity to fund growing demand for residential solar projects.”
Mosaic is trying to position itself as the solar loans market-leader, with a business model based on providing loans with fixed interest rates to homeowners to purchase rooftop solar systems. Its financing timelines range from 10 to 25 years, with interest rates between 2.49% and 8.48%.
The company has set itself of having a significant USD 1 billion available to homeowners for solar loans by the summer of 2017. This newest financing facility is a significant step towards that goal, as it is the largest the company has secured over the last year. The two most recent facilities before this were a USD 220 million facility from Warburg Pincus, secured in August, and a USD 200 million warehouse facility from DZ Bank, secured in April.