Citigroup is closing in on a securitisation deal for a residential solar rooftop project this year, according to a company official.

The market is expecting to see solar securitisation transactions either this year or in early 2013, Trevor d’Olier Lees, director of the US utilities and infrastructure practice of Standard & Poor’s (S&P) Rating Services in New York, told attendees of the Environmental Bonds conference in New York on Wednesday.

“We can say publicly that conversations with bankers, with developers are happening right now,” he said. “It’s not theoretical. It’s not hypothetical.”

“The momentum has been building,” d’Olier Lees continued. “The earlier conversations had a lot of gaps. The newer conversations are much more solid.”

Rooftop solar

Rooftop solar: coming to a securitisation near you (Photocredit)

Citigroup has been working on developing a securitisation bond structure for large pools of residential solar projects, said Stuart Murray, director of infrastructure and project finance for Citigroup. He said he hopes Citi can complete such a deal in 2012.

“I think we and a lot of other firms are looking to crack that nut,” Murray said. “It would be an incredibly efficient source of financing to stimulate the deployment of residential rooftops.

via Environmental Finance | News | Citi eyeing solar securitisation deal this year.