Hanwha Q CELLS Enpin Secures 350 Billion KRW Funding Through US Solar ABS Sale

100% Subsidiary of US Corporation... Business Started Last Year
Achieved 18,000 Cumulative Contracts and Total of 800 Million USD

Hanwha Solutions Q CELLS Division announced on the 22nd that its U.S. residential solar financing subsidiary EnFin has successfully completed the full sale of asset-backed securities (ABS) worth $250 million (approximately 350 billion KRW), backed by loan receivables from customers' residential solar installations. The global investment bank RBC Capital Markets participated as the lead underwriter, and Santander Bank, the largest bank in Europe, participated as a joint bookrunner.

EnFin, a 100% subsidiary of Hanwha Q CELLS USA, provides financial solution services including installment financing (Solar Loan) for customers who want to install solar panels on their homes. After a pilot project in 2022, the business officially launched in January last year.

Through this transaction, EnFin has efficiently and stably secured the funds necessary for its financing business. ABS, which are issued backed by receivables, can be issued at relatively low interest rates, reducing corporate financing costs.

Exterior view of a U.S. home equipped with Hanwha Solutions Q CELLS division's residential energy solution
[Photo by Hanwha Solutions]

In addition, EnFin has completed the establishment of revolving credit facilities totaling $500 million, with $250 million each from RBC Capital Markets and Santander Bank, securing a diverse funding portfolio.

In January this year, EnFin expanded its financing services by launching the TPO (Third Party Ownership) program. TPO is a service where a company directly owns, operates, and manages solar equipment installed on customers' homes and provides renewable energy power. According to global research firm Wood Mackenzie, over 20% of U.S. residential solar installations last year were through TPO.

Hanwha Q CELLS has established itself in another new business area: financial solutions. According to global energy consulting firm Wood Mackenzie, 60-70% of newly installed U.S. residential solar systems from 2022 to 2023 were installed through installment financing services. Riding on the growth of the U.S. residential solar and financing market, EnFin has achieved a cumulative contract count of 18,000 and a cumulative contract volume of $800 million as of this month.

Lee Gu-young, CEO of Hanwha Q CELLS, said, "Despite the recent contraction in the financing environment due to high benchmark interest rates, EnFin's successful full sale of ABS means it has established a self-operable financial business structure." He added, "Hanwha Q CELLS is completing its vision as a total green energy solution provider by preparing financial solutions in addition to manufacturing, development, and EPC solutions in the renewable energy sector."