700 million euro financing model for Enpal

Enpal, a provider of residential solar solutions and Germany's largest provider of heat pumps, has partnered with UK investment manager M&G to establish a €700 million ABS warehouse for residential solar and heating loans.

The new structure is designed to accelerate the roll-out of Enpal's embedded financing solutions for solar and heating while enabling fully capital-efficient refinancing.

Support from international banks

The warehouse is backed by €600 million in senior lending from Citi, Barclays, Bank of America and Crédit Agricole CIB. This financing underlines the attractiveness of the embedded financing model and creates the basis to quickly equip thousands of households with modern energy systems without the corresponding high initial investment.

The additional financing from leading international banks shows how convincing our embedded financing model is. The new structure allows us to scale even more capital-efficiently and equip households with solar solutions and heat pumps without high upfront costs.

Viktor Wingert, CFO and co-founder of Enpal

Partnership with M&G at the heart of the refinancing

The cooperation with M&G, which was launched in 2022, has become a central building block in Enpal's refinancing process.

Together, we will continue to switch thousands of households to renewable energy solutions every month while strengthening Europe's energy independence.

Gregor Burkart, Senior Vice President Asset Financing at Enpal

With the new warehouse, Enpal can roll out its embedded financing solution even more in an equity-light model. This means that

• Households can use solar and heating solutions without high upfront costs.
• Enpal is scaling its business model in a capital-efficient manner without tying up large amounts of its own funds.
• The partnership with international banks ensures stable refinancing and planning security.

The new structure is a further milestone in Enpal's growth strategy and underlines the role of embedded financing as a key instrument for the energy and climate transformation in the private sector.