Nuveen Green Capital completes second rule 144A securitization of C-PACE assets
Darien, CT – Nuveen Green Capital, a leader in Commercial Property Assessed Clean Energy (C-PACE) financing and leading issuer of C-PACE backed securities, announced today that it has closed on its second securitization of C-PACE backed assets in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
The transaction totaled $135 million in asset backed notes collateralized by commercial property assessed clean energy assets, in a single tranche receiving a AAA rating from DBRS Morningstar, the global rating agency. Truist Securities, Inc. served as structuring agent and bookrunner.
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 paid back over a 20+ year term through a special property assessment.
“Against the backdrop of historically high market volatility and a flood of inexpensive secondary supply, we continue to see strong and growing investor interest in C-PACE through the Nuveen Green Capital platform. As with our last 144A securitization, this deal was oversubscribed, as we benefited from well-timed hedges and dislocation in the market to build an attractive pool and structure for investors looking for countercyclical yield during unpredictable market conditions. The strength of the collateral, as well as the resilience of the asset class through different market cycles, show that C-PACE has really come into its own as an institutional asset class,” said Alexandra Cooley, CIO & Co-Founder of Nuveen Green Capital.
“The execution of this deal demonstrates the attractiveness of the C-PACE asset class and its ability to weather any economic climate,” said William Huffman, head of Nuveen equity & fixed income, which includes global equities, taxable fixed income, municipals, multi-asset and private capital. “The announcement today is another proof point of Nuveen Green capital’s leadership, which has been crucial to establishing C-PACE as an institutional asset class.”
In December 2021, the company completed its first Rule 144A securitization, which was also the industry’s largest securitization of C-PACE assets at $173 million.
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 management. 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 www.nuveen.com/greencapital.