Nuveen Green Capital closes third and largest rule 144A securitization of C-PACE assets
Nuveen Green Capital surpasses $1 billion in combined securitizations of C-PACE assets with transaction.
Darien, CT (April 12, 2023) – Nuveen Green Capital, a leader in Commercial Property Assessed Clean Energy (C-PACE) financing and leading issuer of C-PACE backed securities, has closed on its third securitization backed exclusively by C-PACE property assessments issued pursuant to Rule 144A under the Securities Act of 1933.
The transaction totaled $256.6 million in asset-backed notes, collateralized by Commercial Property Assessed Clean Energy property assessments, structured into two tranches, with the A tranche receiving a AAA rating, which was oversubscribed, and the B tranche receiving a AA rating, both from DBRS Morningstar, the global rating agency. Truist Securities, Inc. served as structuring agent, lead manager, joint bookrunner, and co-green structuring agent. Stifel, Nicolaus & Company, Inc. served as lead manager, joint bookrunner and co-green structuring agent, and ING Financial Markets, LLC, served as passive bookrunner and co-green structuring agent. With this transaction, Nuveen Green Capital officially surpasses $1 billion in combined securitizations of C-PACE assets.
C-PACE is a financing mechanism that provides commercial property owners access to low-cost, long-term, fixed-rate capital for energy efficiency, water conservation, and renewable energy improvements that are repaid over a 20+ year term through a special property assessment.
Investor demand continues to strengthen in C-PACE and for the Nuveen Green Capital platform, even in volatile market conditions. For many investors, C-PACE is an attractive asset class throughout different market cycles because of the strength of the underlying collateral. With significant tailwinds driving more building owners to improve building sustainability, including investor, tenant and policy requirements, as well as state and local governments seeking ways to encourage clean energy and economic development, we expect tremendous growth for the attractive ESG investment opportunities that C-PACE offers,
“This transaction highlights the durability and attractiveness of the C-PACE asset class which has increasingly become a sought-after allocation among institutional investors,” said William Huffman, head of Nuveen equity & fixed income, which includes global equities, taxable fixed income, municipals, multi-asset and private capital. “Nuveen Green Capital’s vision, mission and ability to deliver on meaningfully reducing emissions in the built environment through structured finance continues to make them a leader in growing C-PACE as an institutional asset class.”
In December of 2021, the company completed its first Rule 144A securitization, which at the time was the industry’s largest securitization of C-PACE assets at $173 million. For this first transaction, Nuveen Green Capital was awarded the GlobalCapital Esoteric ABS transaction of the year for its innovation in bringing a scalable C-PACE structure to market. In November of 2022, the firm closed its second Rule 144A securitization. The firm has been nominated for ESG Issuer of the Year by GlobalCapital for their second Rule 144A securitization.
About Nuveen Green Capital
Nuveen Green Capital is a national leader in sustainable commercial real estate financing solutions and an affiliate of Nuveen, the investment manager of TIAA responsible for $1T+ in assets under management1. Established in 2015 by the C-PACE industry’s founders and standard-setters, Nuveen Green Capital is a private capital provider dedicated to making sustainability a smart financial decision for commercial real estate owners who seek to improve the energy, water and resiliency performance of their property. For more information, visit nuveen.com/greencapital.