SAN FRANCISCO, Jan. 27, 2022 /PRNewswire/ -- Poppy Bank, recognized as one of the strongest financial institutions in the nation with branches throughout California, today announced the closing and funding of $103 million in Commercial Property Assessed Clean Energy (C-PACE) financing for the Chinese Hospital in San Francisco. The transaction includes both taxable and tax-exempt components and is the single largest C-PACE transaction ever in the nation.
"We are very excited about this transaction and the Poppy Bank C-PACE Financing Division," said President and Chief Executive Officer, Khalid Acheckzai. "We started our C-PACE Division in late 2020 and our ability to provide the most competitive cost structure nationally has allowed us to now fund the largest C-PACE transaction ever in the United States. Offering clean energy funding for commercial projects through C-PACE is a game changer for the nation. This transaction supports San Francisco's new initiative of achieving a net-zero emissions by 2040 -- and I am proud that Poppy Bank is part of this positive change. I would like to thank GreenRock, The California Statewide Communities Development Authority (CSCDA) and Jones Hall for their contributions to this transaction."
This C-PACE financing, which was entirely funded by Poppy Bank, reduces the cost of financing for seismic and other building improvements associated with the new patient tower. The transaction goes towards refinancing outstanding debt and will provide the Chinese Hospital with a cashflow savings of more than $40 million over the next 10 years, a tremendous benefit during a historically crucial time for the medical industry.
Almost half of the energy consumed in the United States is used to operate buildings. C-PACE is an economic driver for business growth, local job generation, and environmental sustainability. When approved, C-PACE financing may cover up to 100% of eligible costs. The financing is repaid through a property assessment payment paid through the term of financing.
About Poppy Bank
Since opening the first branch in January 2005, Poppy Bank has grown to over $4 Billion in assets with branches across the San Francisco Bay Area, Roseville, and Southern California. Poppy Bank has loan production offices in Northern and Southern California, as well as loan production officers in Utah, Texas, New York, and South Carolina. The Bank is committed to providing the best products and services, propelling its success, and garnering national recognition for its performance. Poppy Bank is 5-star rated by BauerFinancial Inc., the nation's leading independent bank and credit union rating firm and is recognized as one of the strongest financial institutions in the country. Poppy Bank has also been ranked as one of the best-performing banks in the nation by the ICBA. The Bank is governed by a strong team of Executive Officers and a dedicated Board of Directors formed entirely by accomplished business leaders. Poppy Bank exists to meet the banking needs of clients and to make a positive difference in the communities served. For more information visit www.poppy.bank.
About Poppy Bank's C-PACE Financing
C-PACE provides long-term, fixed rate and low-cost capital to commercial property owners for water conservation, seismic and clean energy projects -- and can be used to retroactively finance energy-efficient construction that has already been completed. C-PACE is a national initiative with renewable energy programs tailored to meet local market needs. Programs are approved by local government and passed by state legislature. Then, program carriers like Poppy Bank can qualify projects and provide the financing. Unlike other project financing, the borrowed capital from C-PACE projects is repaid over time via a voluntary tax assessment on the property. The security provided by the tax assessment, results in long term investments in building performance and transferability of the payment obligations to the next property owner when sold. For more information visit www.poppy.bank/cpace.
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