The Peck Company Holdings and its Strategic Partner GreenBond Advisors Featured by Nasdaq TradeTalks

Rhea-AI Summary

The Peck Company Holdings (NASDAQ: PECK) recently highlighted insights from interviews regarding the expansion of green bonds in renewable energy. CEOs William Dale and Jonas Englund emphasized the significance of these bonds in financing solar projects, projecting a green bond market growth to $5 trillion by 2035. The partnership with GreenBond Advisors enhances Peck's capital access without burdening its balance sheet. The firm anticipates 70-80% of electricity generation will come from renewables in 20 years, with solar expected to rise to 30% from less than 2% today.

Positive

• Access to project growth capital via GreenBond partnership improves liquidity ratios.
• First Right of Refusal for constructing all solar projects strengthens market position.
• 100% funding for projects reduces financial risk and improves revenue recognition.

Negative

• None.

The Peck Company Holdings, Inc. (NASDAQ: PECK) (the “Company” or “Peck”), a leading commercial solar engineering, procurement and construction (EPC) company, is pleased to provide highlights from recent interviews by Jill Malandrino, Global Markets Reporter for Nasdaq.

To view the full interviews, please click: Nasdaq TradeTalk Interviews

“Financing the transition to renewable energy with green bonds”
November 24, 2020

William Dale, Chief Executive Officer and Jonas Englund, Chief Strategy Officer of GreenBond Advisors provided an in-depth perspective about green bonds and what it means for companies able to access funds to construct renewable energy assets. Mr. Dale explained that it was important for GreenBond Advisors to partner with experts in the field because there are complexities and barriers to entry to moving into this space. Partnering with The Peck Company was important because Peck will have a significant territorial advantage to expand its footprint by having access to capital like the green bond market.

Swedish investment bank SEB, underwriter of the first Green Bond in 2008, has forecast the Green Bond market will exceed $1 trillion by the end of 2020. Many pundits compare the potential growth and demand to mirror that of ETFs which were a $1 trillion asset class 15 years ago, growing into $5 trillion today, as to predict that the Green Bond market asset class will be $5 trillion by 2035.

Dale and Englund believe that we are undergoing a transformational change to a society powered by clean electricity that is being driven by innovation. Forecasters expect renewables to make up 70-80% of electricity generation in 20 years, up from just 28% today. Solar specifically represents less than 2% of the U.S. grid today and is estimated to be at 30% in 20 years. Infrastructure is needed to support such growth, and GreenBond Advisors with its partners like The Peck Company intend to be active in construction and ownership of assets.

In April 2020, Peck and GreenBond Advisors formed a new investment partnership that Peck believes will increase Peck’s access to capital for the construction of new solar projects and to scale its existing pipeline of new EPC business. Peck partnered with GreenSeed Investors LLC and its affiliates GreenBond Advisors LLC and Solar Project Partners LLC to gain access to the rapidly growing Green Bond segment of the fixed income markets. Of note, this partnership provides Peck with access to project growth capital through additional EPC contract work from Green Bond proceeds while improving working capital and strengthening liquidity ratios.

This partnership is a significant strategic advantage for Peck since project financing for constructing new projects will come from the GreenBond partnership and not from Peck’s balance sheet. In addition, owning the projects through the partnership allows Peck to recognize all construction revenue and to participate in recurring revenue streams from the owned assets.

Benefits to Peck for projects constructed through the GreenBond partnership:

• Peck has a First Right of Refusal to construct all solar projects for the partnership
• Committed funds acquire qualified NTP projects based on pre-defined criteria
• 100% funding for Peck to construct from NTP to COD; no debt required by Peck
• 100% revenue recognition for all constructed projects through the partnership
• ~20% ownership in constructed assets of the partnership with long-term recurring revenue

“2021 outlook and trends in the solar space”
November 23, 2020

Daniel Dus, Head of Renewables at Adani Solar USA and Board Member of The Peck Company Holdings, commented about solar being a critical infrastructure and has been resilient even during the recent pandemic and economic downturns. Dus says that 100 GWs of solar infrastructure will be constructed over the next 5 years, representing 50% growth. Technology improvement has enabled lower cost of energy, caused increased adoption and expanded the size of the market. The upcoming U.S. political environment under soon-to-be President Biden is also expected to increase support of renewables and specifically solar, which Dus believes will accelerate the expansion of needed infrastructure.

“M&A activity and financing new projects through Green Bonds”
October 19, 2020

Jeffrey Peck, Chief Executive Officer of The Peck Company Holdings, discussed the Company’s three pronged growth strategy, including organic growth, accretive M&A and owning assets for recurring revenue. The Company grew its project revenue by nearly 69% in its first year as a public company and its current project backlog for 2021 is over $50 million. Peck has expanded its reach in the New England area, having recently been awarded new projects in Maine and Rhode Island. The Company continues to identify and analyze a robust pipeline of accretive M&A targets that would benefit from accessing the public markets through a transaction with Peck. Additionally, Peck’s green bond partnership announced in April 2020 is a unique advantage for a solar EPC to drive both top line revenue for EPC construction and recurring revenue from owning solar assets.

About The Peck Company Holdings, Inc.

Headquartered in South Burlington, VT, The Peck Company Holdings, Inc. is a 2nd-generation family business founded in 1972 and rooted in values that align people, purpose, and profitability. Ranked by Solar Power World as one of the leading commercial solar contractors in the Northeastern United States, the Company provides EPC services to solar energy customers for projects ranging in size from several kilowatts for residential properties to multi-megawatt systems for large commercial and utility scale projects. The Company has installed over 160 megawatts worth of solar systems since it started installing solar in 2012 and continues its focus on profitable growth opportunities. Please visit www.peckcompany.com for additional information.

About GreenBond Advisors, LLC

Headquartered in New York City, NY, GreenBond Advisors was recently formed to deliver financial product innovation into the Green Bond market with new Green Bond product designs that allow risk-adverse investment capital to be more easily directed into new green energy infrastructure development. GreenBond Advisors works with an ecosystem of affiliate companies and partnerships designed to help conservative investors earn competitive rates of return while making a measurable impact on the transition to a world powered by clean energy. Please visit www.greenbondadvisors.com for additional information.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition.

The forward-looking statements included in this press release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201214005055/en/

FAQ

What are the key benefits of Peck's partnership with GreenBond Advisors?

The partnership enhances Peck's access to capital for solar projects, allowing for 100% funding without debt, and provides a First Right of Refusal for construction, improving liquidity and revenue recognition.

How does the green bond market impact Peck Company Holdings?

The green bond market is expected to exceed $1 trillion by the end of 2020, potentially growing to $5 trillion by 2035, providing significant opportunities for Peck in financing renewable energy projects.

What is Peck's forecast for solar energy growth?

Peck anticipates solar energy will increase from less than 2% to 30% of U.S. electricity generation over the next 20 years, driven by technological advancements and supportive policies.

What was Peck's project revenue growth last year?

Peck reported a nearly 69% increase in project revenue in its first year as a public company, with a backlog exceeding $50 million for 2021.