Green Bond Fact Sheet

SHREC

Date: 11/07/2019

Issue date: 02-04-2019 Maturity date: 15-06-2044 Tenor: 25.2
Issuer Name

SHREC ABS 1 LLC

Amount Issued

USD38.6m

Country of risk

USA

CBI Database

IncludedIssuer Type1ABS

Bond Type

Solar ABS

Green Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

KBRA (A- and BBB-)☒ Energy☒ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission
vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Flood protection☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
ReportingCompany information

A Solar Home Renewable Energy Credit (“SHREC”) is a solar incentive that allows
homeowners to sell certificates for energy to their utility.
The Connecticut Green Bank is a quasi-public corporation established in 201 develop andimplement strategies that bring down the cost of clean energy in order to make it moreaccessible and affordable to consumers in the residential, commercial, and industrial
sectors.

Firsts, records andcertificationsFirst ABS deal from the state of Connecticut.

Proceeds description

The notes are backed by the proceeds from the sale of solar renewable energy credits(“SHREC Receivables”), generated under Connecticut Green Bank’s SHREC programme toConnecticut’s two investor-owned utility companies, The Connecticut Light and Power
Company, a.k.a. Eversource Energy, and United Illuminating Company, under two Master
Purchase Agreements (MPAs).
The SHRECs will be generated from solar PV systems participating in Connecticut Green
Bank’s Residential Solar Investment Program. The bank aggregates these SHRECs into
annual tranches and sells them to the utility companies at a fixed, predetermined priceover a 15-year period. The SHRECs in this transaction will be generated from 6,788 PV
Systems in Tranche 1 and 7,250 PV Systems in Tranche 2. Under the two MPAs, Eversourceis required to purchase 80% of the SHRECs created within each tranche and United
Illuminating is required to purchase the remaining 20%.

Climate Bonds view

The SHREC approach to funding residential solar and the fixed price of the credits provides
certainty to utility companies and investors. It also demonstrates how local government
can incentivise a shift to solar: The Green Bank provides incentives to homeowners andthird-party system owners to deploy residential PV Systems, and acquires the renewableenergy certificates pursuant to Public Act No. 16-212 and Public Act No. 15-194.
The state of Connecticut’s strategy includes a goal of achieving 20% electricity production
from renewable sources by 2020.

Underwriters

Connecticut Green Bank (originator); BNY Mellon (trustee)

Deal comments
Credit Rating
Pricing summary
Investors summaryA-, BBB- (KBRA)

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign