Redaptive, a sustainability and energy-efficiency infrastructure company, has secured $216 million in financing through a first-of-its-kind asset-backed securitization tied to long-term Energy-as-a-Service (EaaS) performance contracts — marking a significant evolution in how clean-energy and efficiency projects are funded at scale.
The private placement, structured and underwritten by Deutsche Bank Securities Inc., converts contracted, performance-based energy savings into an institutional-grade investment product. By securitizing predictable EaaS cash flows, Redaptive has created a repeatable capital-markets model that bridges corporate sustainability initiatives with long-duration infrastructure capital.
The transaction represents one of the largest financings to date for energy efficiency assets packaged through a securitization structure, underscoring growing investor appetite for climate-aligned investments with stable, infrastructure-like returns.
Unlocking Capital for Energy Efficiency at Scale
Redaptive’s EaaS model allows commercial and industrial customers — including large, multi-site enterprises — to deploy energy-efficiency upgrades without upfront capital expenditure. Projects typically include lighting retrofits, HVAC optimization, controls, and other building-level efficiency improvements, delivered under long-term performance contracts that guarantee measurable energy savings.
These contracts generate consistent payment streams tied to verified operational performance, forming the basis of the securitized asset pool. The portfolio spans numerous customer sites and geographies, creating diversification and resilience attractive to institutional investors.
“This financing validates energy efficiency as a scalable infrastructure asset class,” said Matt Gembrin, Chief Investment Officer of Redaptive. “By translating performance-backed sustainability projects into capital-markets instruments, we are unlocking significantly more funding for decarbonization while aligning financial returns with environmental outcomes.”
A New Asset Class for Sustainable Finance
Historically, energy-efficiency projects have struggled to access large pools of institutional capital due to fragmentation and perceived risk. Redaptive’s securitization addresses this challenge by aggregating contracts into a standardized structure with defined risk characteristics, credit protections, and long-term visibility into cash flows.
The transaction is undergoing final ratings assessment by Kroll Bond Rating Agency, which is evaluating the portfolio’s performance history, contract structure, and operational controls — a key step toward broader institutional adoption.
Industry observers view the deal as a potential blueprint for future securitizations tied to sustainability-linked infrastructure, including distributed energy resources, building modernization, and electrification initiatives.
Aligning ESG Outcomes With Financial Performance
As regulatory pressure, corporate climate commitments, and investor demand for ESG-aligned assets converge, Redaptive’s model offers a pragmatic solution: financing decarbonization through structures already familiar to capital markets.
For corporate customers, the approach delivers energy savings, emissions reductions, and predictable operating costs without balance-sheet strain. For investors, it provides access to long-term, contracted cash flows linked to real-world sustainability impact.
The financing also reinforces the growing role of banks and capital-markets firms in accelerating the energy transition by developing new instruments that can scale proven climate solutions.
Positioning for Continued Growth
With the $216 million financing in place, Redaptive plans to accelerate deployment of energy-efficiency projects across its customer base, expand its contract portfolio, and lay the groundwork for future issuances.
The transaction signals that Energy-as-a-Service is moving beyond pilot programs into a mature, financeable infrastructure category, capable of attracting large-scale private capital in support of global decarbonization goals.
Sources
- American Banker — Redaptive Sustainability raises $216 million from energy-as-a-service
https://asreport.americanbanker.com/news/redaptive-sustainability-raises-216-million-from-energy-as-service - PR Newswire — Redaptive closes approximately $216 million financing for first-of-its-kind securitization backed by Energy-as-a-Service performance contracts
https://www.prnewswire.com/news-releases/redaptive-closes-approximately-216-million-financing-for-first-of-its-kind-securitization-backed-by-energy-as-a-service-performance-contracts-302645068.html - Market & investor reports cited by American Banker on sustainable infrastructure securitization
