Rating agency KBRA recommends asset-backed securities to finance Europe's solar industry’s growth
Post date: 16/02/2023 - 23:34
Kroll Bond Rating Agency, LLC (KBRA) has published a report on Europe’s potential of asset-backed securities (ABS) based on solar modules as collateral for financing new photovoltaic installations. While this type of collateral has reached a total volume of $ 8.6 billion (€ 8 billion) in the U.S. in 2022, it is still hardly used in Europe.
KBRA believes that ABS could play a significant role in the EU’s photovoltaic expansion goals and »could offer a vital source to recycle funds into new lending«. In the U.S., the ABS market has grown rapidly from $1.4 billion in 2016 to its current volume, mobilizing more than $ 27 billion of capital market funding, according to KBRA.