MMA Capital Holdings, Inc. focuses on infrastructure-related investments that generate positive environmental and social impacts, with an emphasis on debt associated with renewable energy projects.
In addition to renewable energy investments, the company continues to own a limited number of bond investments and real estate-related investments; and it continues to have subordinated debt with beneficial economic terms.
The company also relies upon other third-party vendors to conduct business op...
MMA Capital Holdings, Inc. focuses on infrastructure-related investments that generate positive environmental and social impacts, with an emphasis on debt associated with renewable energy projects.
In addition to renewable energy investments, the company continues to own a limited number of bond investments and real estate-related investments; and it continues to have subordinated debt with beneficial economic terms.
The company also relies upon other third-party vendors to conduct business operations, including vendors that provide information technology services, legal and accounting services or other support services.
Renewable Energy Investments
The company invests in loans that finance renewable energy projects to enable developers, design and build contractors and system owners to develop, build and operate renewable energy systems throughout the U.S. Renewable energy debt in which the company invests is primarily structured as senior secured fixed rate loans that are made through joint ventures or directly on its balance sheet. The company targets loans that are short-term in nature, and that are typically made to borrowers when they are in the late stages of development or in construction of their commercial, utility or community solar scale photovoltaic (PV) facilities, but the company may also make longer duration loans to these borrowers to finance completed facilities. These facilities are located across different states and benefit from various state and federal regulatory programs.
The company generally invests in renewable energy investments through various joint ventures, such as Solar Construction Lending, LLC (SCL); Solar Permanent Lending, LLC (SPL); and Solar Development Lending, LLC (SDL). Together with its wholly owned subsidiary, Renewable Energy Lending, LLC (REL), these joint ventures are collectively referred to as the ‘Solar Ventures’. The company is a 50% investor member in the renewable energy joint ventures in which it invests.
Other Investments and Hedging Instruments
The company has 80% ownership interest in a joint venture, which owns a mixed-use town center development that consists of hotel tenants, retail tenants and undeveloped land parcels and whose incremental tax revenues secure its tax-exempt municipal bond (Infrastructure Bond) (the ‘SF Venture’).
Lending Activities of the Solar Ventures
The Solar Ventures typically lend on a senior secured basis collateralized by solar projects, but may also invest in subordinated loans, mezzanine loans and revolving loans and may finance non-solar renewable technologies, such as wind and battery storage, or provide equipment financing and other customized debt solutions for borrowers.
Investments in Bonds
The company has one tax-exempt municipal bond that financed the development of infrastructure for a mixed-use town center development in Spanish Fort, Alabama; and is secured by incremental tax revenues generated from the development. As of December 31, 2020, this Infrastructure Bond had a stated fixed interest rate of 6.3%.
Real Estate-Related Investments
As of December 31, 2020, the company maintained an interest in a real estate-related investment through its 80% ownership interest in the SF Venture.
As of December 31, 2020, the company also owned one direct investment in real estate consisting of a parcel of land that is in the process of development. This real estate is located just outside the city of Winchester in Frederick County, Virginia.
As of December 31, 2020, the company maintained an 11.85% ownership interest in the South Africa Workforce Housing Fund (SAWHF). SAWHF is a multi-investor fund that matured in April 2020.
Other Debt Obligations
As of December 31, 2020, the company had other debt obligations that included subordinated debt, notes payable and other debt used to finance certain non-interest bearing investments and asset related debt that was used to finance interest bearing investments.
History
The company was founded in 1996. It was formerly known as Municipal Mortgage & Equity, LLC and changed its name to MMA Capital Management, LLC in 2014. Further, the company changed its name to MMA Capital Holdings, Inc. in 2019.