Hannon Armstrong launches 1st Green CP program in the U.S.

Hannon Armstrong

Hannon Armstrong Sustainable Infrastructure Capital, a leading investor in climate solutions, announced this Monday it has launched the first Green Commercial Paper Program (CP Program) in the United States.

Firstly, the Green CP Program, named as CarbonCount, has $100 million capital. It also has BofA Securities as the sole dealer and green structuring advisor. According to the statement, the amounts available in the program may be borrowed, repaid, and re-borrowed from time to time. However, it would have a maximum aggregate face of $100 million, as outlined above.

The notes will sell under the terms of the U.S. paper market. They will also be at least equal in right of payment with all of Hannon Armstrong’s other unsecured and unsubordinated indebtedness. Furthermore, Bank of America will support the program, through a direct-pay letter of credit.

In addition, the net proceeds from the CarbonCount program will be to acquire o refinance, whole or in part, eligible green projects. Those would include Behind-the-Meter, Grid-Connected, and Sustainable Infrastructure projects. Among those in the Behind-the-Meter category would be energy efficiency, solar generation, energy storage, and also heating, ventilation, and others.

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Hannon Armstrong only invests in green projects

On the other hand, among those in the grid-connected category would be solar and wind projects for off-takers or wholesale electricity; and those in sustainable infrastructure would include upgraded transmission; water recovery, in addition to those aimed at the creation of positive environmental impact.

In fact, such a portfolio of projects to be funded is consistent with Hannon Armstrong’s investment thesis. Indeed, the company only invests in assets that are neutral to negative on incremental carbon emissions or have some other tangible environmental benefit. To elect projects, the company uses its CarbonCount methodology, which tracks and reports the project’s carbon emissions.

The company, through the use of such a methodology, intends to provide transparency in project finance.

Finally, about the CarbonCount Green CP program, Jeffrey A. Lipson CFO and COO of the company, said. “This CarbonCount Green Commercial Paper Program is another cost-effective and innovative component of our diverse funding platform, as we remain a leader in both climate positive investing and green debt issuance.”

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