Financing

IMG_0882Twice 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):

  1. 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”).
  2. 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.
  3. 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.
  4. Issuer issues bonds secured by payments under the Participants’ Leases.

 

Financing Diagram

Financing Timeline

Indicative Borrowing Rates

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