M&T Bank Corporation completed a sale‑leaseback financing of a portfolio of seven commercial and industrial solar projects totaling approximately 2.7 MW. The bank purchased the assets and immediately leased them back to Verogy Holdings, LLC, giving Verogy working capital while allowing it to continue operating the installations.
The seven projects are spread across multiple U.S. states and serve a mix of corporate and municipal customers. By structuring the transaction as a sale‑leaseback, Verogy unlocks the value of its distributed‑generation assets while retaining the ability to generate revenue from the solar installations.
The deal is part of M&T Bank’s broader renewable‑energy strategy, which set a $1 billion target for renewable‑energy project financing between 2022 and 2026. As of 2024, the bank had achieved 95% of that commitment, and the new financing further diversifies its loan book beyond traditional commercial real‑estate exposure while enhancing fee‑income through structured finance.
Verogy benefits by recycling capital to accelerate its development pipeline. Energetic Capital provided a credit‑insurance policy that increased revenue certainty and broadened the portfolio’s eligibility for financing. “We are pleased to partner with M&T Bank and Energetic on this portfolio, which allows us to efficiently recycle capital and accelerate deployment across our pipeline. Structures like this are critical to scaling distributed solar and meeting growing customer demand,” said William Herchel, CEO of Verogy.
M&T Bank’s ESG commitment has faced scrutiny; a 2025 Bank.Green assessment described the bank’s sustainability disclosures as weak and noted limited transparency on renewable‑energy lending. The sale‑leaseback demonstrates tangible progress toward the bank’s renewable‑energy financing goals and addresses some of the criticism.
Jenna Augusti, M&T Bank’s Commercial Senior Relationship Manager, said, “This transaction reflects our commitment to advancing sustainable energy solutions that deliver long‑term environmental benefits. We’re proud to work alongside Verogy and finance renewable energy projects that strengthen our communities.” Nathan Maggiotto, CEO of Energetic Capital, added, “Access to efficient capital is critical for continued growth in distributed solar. Credit insurance helps align developer and lender objectives by mitigating counterparty risk and supporting scalable portfolio financing.”
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