AES Distributed Energy plans solar asset-backed security issue

Colorado-based AES Distributed Energy, a unit of power producer AES Corp (NYSE:AES) plans to issue a solar asset-backed securities (ABS), according to a filing with the US Securities and Exchange Commission on Monday.

Pending SEC's approval, the ABS will be issued through a platform Aurora Master Funding and it is set to become the first ever solar assets-backed deal to be entirely sponsored by a utility company.

The issue is underwritten by Morgan Stanley (NYSE:MS).

The collateral portfolio behind the ABS comprises equipment leases and power purchase agreements pertaining to 43 MW of solar assets owned through 15 different project companies, according to Reuters.

The US market has seen only five solar ABS deals, worth a combined USD 560.5 million (EUR 503m) till date. Four of these were issued by SolarCity Corp (NASDAQ:SCTY), and the latest was placed in July this year by Sunrun Inc (NASDAQ:RUN).

AES Distributed Energy came into being earlier this year following the acquisition of Main Street Power by AES Corp. The company has recently completed three solar PV projects totaling 2 MW in Vermont and another in California.

(USD 1 = EUR 0.899)

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