Twice monthly PennSEF reports Indicative Borrowing Rates on the Program’s webpage. Indicative rates are projected by bond maturity and credit rating for tax-exempt and taxable financings. Through pooling, serialization, and customization, the Programcan offer highly competitive cost-efficient financing.
The PennSEF financing structure has four major components (see bond financing diagram below):
- Participant enters into lease with the issuer agreeing to make quarterly payments for installation of energy/water conservation and onsite clean energy generation measures (“CMs”).
- Participant signs a Guaranteed Savings Agreement (“GSA”), with a Program pre-qualified Energy Service Company (“ESCO”), that identifies all CMs, their annual guaranteed savings and debt service, payback periods, debt service, and other metrics over the life of the agreement.
- Participant and ESCO enter into a Program Agreement and agree to report performance metric search quarter by CM, and to specify direct and indirect job creation.
- Issuer issues bonds secured by payments under the Participants’ Leases.