Hannon Armstrong upsizes, prices $375M in green bonds

Annapolis-based Hannon Armstrong Sustainable Infrastructure Capital Inc., an investor in climate change solutions, Wednesday announced it has upsized and priced its private offering of $375 million in aggregate principal amount of 3.75% senior unsecured notes due 2030 by its indirect subsidiaries, HAT Holdings I LLC and HAT Holdings II LLC. The offering was upsized from the previously announced $350 million in aggregate principal amount.

The senior unsecured notes will be guaranteed by the company, Hannon Armstrong Sustainable Infrastructure L.P. and Hannon Armstrong Capital LLC. The settlement of the senior unsecured notes is expected to occur Aug. 25, subject to customary closing conditions. The notes are expected to be rated BB+ by Standard & Poor’s Rating Services and Fitch Ratings.

The company believes the notes meet the environmental eligibility criteria for green bonds as defined by the International Capital Market Association’s Green Bond Principles.

It intends to utilize the net proceeds of the offering of the Notes to acquire or refinance, in whole or in part, eligible green projects, which include assets that are neutral to negative on incremental carbon emissions. In addition, these projects may include projects with disbursements made during the twelve months preceding the issue date of the bonds and those with disbursements to be made following the issue date.

Prior to the full investment of such net proceeds, the company intends to invest such net proceeds in interest-bearing accounts and short-term, interest-bearing securities which are consistent with the Company’s intention to continue to qualify for taxation as a REIT.