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Solar firms Sunnova and Sunrun shed light on exposure to Silicon Valley Bank

Published 03/10/2023, 05:06 PM
Updated 03/10/2023, 05:10 PM
© Reuters. A sign for Silicon Valley Bank (SVB) headquarters is seen in Santa Clara, California, U.S. March 10, 2023. REUTERS/Nathan Frandino

(Reuters) - Residential solar companies Sunrun (NASDAQ:RUN) Inc and Sunnova Energy on Friday disclosed their exposure to SVB Financial Group, which has been closed down by California banking regulators.

Sunrun stated SVB was one of the lenders in two of its credit facilities, but said it was less than 15% of its total hedging facilities and does not anticipate significant exposure.

Sunrun has cash deposits with SVB totaling nearly $80 million, while SVB's undrawn commitment in the non-recourse senior aggregation warehouse facility is about $40 million.

Sunnova also views its exposure to SVB as negligible since it does not hold cash deposits or securities with the financial group. However, one of its subsidiaries is part of a credit facility where SVB serves as a lender.

SVB has unfunded commitments of $15 million under the Back-Leverage Facility, which is one of three warehouse facilities currently entered into by Sunnova's subsidiaries, with a total commitment of $1.35 billion.

"SVB has been involved in lending to countless renewable energy companies, including solar… this is nothing unique with Sunrun," said Pavel Molchanov, an analyst with Raymond James.

California banking regulators closed startup-focused lender SVB on Friday, which does business as Silicon Valley Bank, making it the largest bank failure since the 2008 financial crisis.

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