Hanwha Q Cells' EnFin completes $250m ABS sales

EnFin, the US-based residential solar financing subsidiary of Hanwha Q Cells, has recently completed the sales of the first asset-backed securities worth $250 million, the Korean energy solution provider said Wednesday.

EnFin provides financial solutions to consumers who install solar panels in their homes. The company began its operation in January 2023.

According to Hanwha Q Cells, the ABS sales comprise bonds backed by thousands of consumer loans. RBC Capital Markets acted as the sole structuring advisor and book-runner, and Santander served as co-manager in the transaction.

“This deal signals confidence in the Hanwha Q Cells brand within the solar financing sector and in the broader capital markets,” said EnFin CEO Alex Kaplan. “EnFin is the only financing platform in the market backed by a major manufacturer, and we benefit from Hanwha Q Cells’ trusted reputation for high-quality equipment and its significant investment to build a sustainable solar supply chain in the US.”

With the latest transaction of ABS, Hanwha Q Cells has successfully diversified its funding portfolio necessary for its financing business, the company noted.

“Despite the recent challenges in the financial sector with high interest rates, EnFin’s successful ABS sales shows that Hanwha Q Cells has established a business structure capable of self-financing,” said Hanwha Q Cells CEO Lee Koo-yung.HAn

In addition to the recent ABS transaction, EnFin has previously closed two revolving credit facilities (RCF) reaching $500 million. An RCF is a type of credit that allows a business to withdraw money, use it to fund the business, repay it and then withdraw it again.

The RCF deal was closed with RBC Capital Market in April 2023 and a second was made with Santander in January 2024, each for $250 million.

Besides the RCF deals, RBC EnFin has also accumulated approximately 18,000 consumer loan contracts with the sum of the principal balances for all receivables reaching more than $800 million.