Infrastructure investor Hannon Armstrong took a big step toward a new clean energy investor pool with the launch of its $100 million green bond offering.
“This is the securitization of assets that were on our balance sheet,” said Jeffrey Eckel, Hannon Armstrong Sustainable Infrastructure (NYSE:HASI) CEO and President. The bonds will mature in December 2019 and are backed by 100 individual wind, solar, and energy efficiency infrastructure installations at twenty properties valued at approximately $110 million.
“The coupon on the transaction is a very competitive 2.79 percent,” Eckel added.
The report Bonds and Climate Change: The State of the Market in 2013 from HSBC and The Climate Bond Initiative states, “Almost 30 percent of bonds [have] yields of less than 1 percent, and 40 percent [are] in the 1 percent to 3 percent yield bracket.” Only about $35 billion of the $346 billion in climate-themed bonds “have yields of 3 percent or higher.”