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SOLAR ROOFTOP SECURITIZATION IN

INDIA AND THE WORLD

Piyush Mathur Simpa Networks, Inc.

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THE GLOBAL PERSPECTIVE Solar securitization is real and happening...

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2014 2015

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n Expected Full Year

•  SolarCity in the US, is the prima donna among issuers, accounting for most of the volumes.

•  Sungevity, Simpa, Sunnova Energy, and Vivint Solar are all in the queue

…but the universe is still small.

Source: Greentech Media

Q1 only

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WHAT DO THESE DEALS LOOK LIKE?

The current view is that 35MW per quarter is the minimum feasible scale.

•  Senior tranche 2014-2: Class A of $160m, rated at BBB+ priced at 4.026%

•  Junior tranche 2014-2: Class B of $41.5m, rated at BB and priced at 5.450%

Source: Greentech Media

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THE INDIA PERSPECTIVE

•  The national ambition is to achieve 40GW rooftop capacity by 2022

•  The current capacity is 700 MW. So, even if the ambition is not achieved, we are looking at multiples of growth

•  Several bilateral ABS deals but no public market securitization with tranches and active investor group

•  The volumes are coming but challenges remain

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THE CHALLENGES: GLOBALLY AND IN INDIA

Limited performance and customer payment data: making it difficult to assess performance risks Lack of widespread operations and maintenance providers: Can’t isolate portfolios entirely from managers if required Standardization in contracts: Pooling of contracts requires some homogenity in structure Education: Low understanding of the business models and risks

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…all eminently solvable

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WHAT IS SIMPA DOING? We sell solar home systems on financing to underserved rural customers

•  Aggregating a portfolio of solar micro-leases (PSL-qualified)

•  Developed innovative book-building structures with banks

•  Next step: Securitisation