What is refinancing?
Refinancing from the perspective of an investor at Trine means that you are using a current investment, which is soon maturing, and allowing the Solar Partner to continue using those funds by refinancing the Solar Partner (the borrower) in a new loan with the same or different terms (e.g. interest rate and tenor).
What are the benefits?
The main benefit of using this option is that money will be used more efficiently. There is no downtime where repayments will be held in investors wallets or reserved in a new loan. Instead, it is immediately starting to generate interest for the investor, excluding any potential transfer period. From the Solar Partners perspective, the main benefit is that they get improved predictability of their financing since investors can commit to future investments.
When does Trine offer the opportunity to refinance a solar partner?
In order for Trine to offer the opportunity of refinancing the following conditions must be met:
- The original loan was a bullet loan meaning that all capital will be paid at maturity.
- The original loan is maturing during a period when the Solar Partner is seeking more finance.
- Trine has approved the Solar Partner for additional debt under the current framework.
- The new terms are set and available to investors at the time when they are offered the opportunity to opt-in to refinancing.