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Tenet secures $25M credit facility from NY Green Bank

Nov 17, 2022
Illustration of a hundred dollar bill stylized as an electric symbol.

Illustration: Aïda Amer/Axios

Tenet, a startup offering loans for EVs and home electrification upgrades, secured $25 million in a first-of-its-kind warehouse facility from NY Green Bank, the company exclusively tells Axios.

Why it matters: Climate technology companies remain relatively insulated from credit market volatility.

Details: NY Green Bank, a division of the New York State Energy Research and Development Authority, is providing Tenet a $10 million warehouse facility with up to $15 million in additional capital available to finance electric vehicle loans in New York state.

  • Tenet CEO Alex Liegl declined to disclose the facility's terms, though he said the cost of capital for ESG investments runs roughly 30% lower than that for non-ESG investments.

How it works: Tenet is a seed-stage company that offers consumer-facing loans for electric vehicle purchases or sustainable home upgrades like heat pump installation.

  • It works with a wide range of financial institutions to provide credit lines to consumers, and the partnership gives those institutions exposure to climate-friendly assets.
  • Liegl says the lower cost of capital translates to lower interest rates for consumers, particularly those that will borrow out of the newest tranche from NY Green Bank.

What they're saying: "Our growth trajectory is relatively insulated from what's going on because of the unprecedented level of government tailwinds," Liegl says.

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