by Kat Friedrich, Clean Energy Finance Center
Over $24 million in residential energy efficiency financing revenue bonds will be issued soon by New York State Energy Research and Development Authority (NYSERDA), according to a preliminary official statement released on July 23.
NYSERDA treasurer Jeff Pitkin said in an e-mail that the bonds will finance loans for buildings housing up to four families. The Green Jobs-Green New York program will issue the loans.
Pitkin said he anticipates the bonds will price on July 30 and close on August 13.
S&P has rated the bonds AAA and Moody’s has rated them Aaa. The bonds received high ratings because the New York State Environmental Facilities Corporation is guaranteeing the loans through its State Revolving Fund program.
The net interest cost on the bonds will be well below 1 percent due to a combination of federal Qualified Energy Conservation Bond subsidies and the AAA rating, Pitkin said. The time it will take the bonds to mature will vary between one and 15 years.
Around 65 percent of the loans will be billed to borrowers directly. Close to 35 percent of the loans will be repaid through utility bill charges.
This bond program is one of the first initiatives of NYSERDA’s green bank, which the state announced in January. The goal of the green bank is to “alleviate financial market barriers that currently impede the flow of private capital to clean energy projects,” Pitkin said.
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