SolarCity Corp Makes First Public Offering Of Solar Bonds

SolarCity Corp Makes First Public Offering Of Solar Bonds
By BrokenSphere (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

SolarCity Corp (NASDAQ:SCTY) is the nation’s largest installer of residential solar panels, installing more than 1 in 3 new solar panel systems in the U.S. The aim of the game is to make it easier for people to get involved in the nation’s transition to renewable energy, while at the same time enjoying attractive returns on their investment.

SolarCity’s solar bonds offering: A groundbreaking initiative

The company will initially be offering up to $200 million in solar bonds via an online investment portal, Although SolarCity Corp (NASDAQ:SCTY) has previously sold solar panel-backed securities, this is the first public offering of solar bonds in the U.S, which the company filed a registration statement for with the Securities and Exchange Commission (SEC) today.

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Earnings on solar bonds will be paid for by income received from monthly payments received from clients across the country. The bonds offer an alternative to traditional investments, and will appeal to the growing number of Americans eager to support societal goals while also investing their money wisely.

To this point SolarCity Corp (NASDAQ:SCTY) has enjoyed backing from a number of large financial institutions and corporations in its attempts to develop renewable energy infrastructure. Now individual investors have the chance to show their support too. Those who wish to invest can start with as little as $1,000, but must be at least 18 years old and meet SolarCity’s eligibility requirements. Interest rates will be of up to 4% over a range of maturities from 1 to 7 years.

Wall Street reacts

As of 15:50 PM EDT, SolarCity Corp (NASDAQ:SCTY) was trading at $47.01, or down 5.43%. Wall Street has not reacted well to the news of solar bonds, with rating the company as a Sell with a ratings score of D+, citing weaknesses which “can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share.”

The company must be hoping that investors take to its new solar bonds and stabilize the company’s share price, which has returned to previous levels after strong performance June-September.

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