Hannon Armstrong bets on solar, issues $164 million in green bonds

The state of the U.S. solar industry is strong, despite the uncertainty surrounding it thanks to the Section 201 trade case currently under adjudication by the U.S. International Trade Commission – at least if one investment group’s actions are an indication.

Hannon Armstrong, an investment firm specializing in sustainable infrastructure (including solar energy), bets on projects and industries that have environmental benefits and long-term cashflows, which is why its decision to issue $164 million in green bonds specifically tied to 57 U.S. solar projects totaling 1.2 GW of capacity sends a strong signal about what it sees as the overall strength of the industry. California is home to the bulk of the projects (73%), with the rest being spread over seven states.

As befitting its status as the state with the most projects, California will receive $119 million from the bond issuance, with New York coming in second with $18 million and Utah ranking third at $8.3 million.

The breakdown of where the $164 million in green bond proceeds will be spent by state.

S&P

The firm owns the lease rights to the projects under long-term power-purchase agreements (PPAs).

In February, Hannon Armstrong invested $144 million to purchase more than 4,000 acres of land located under more than 20 individual solar projects with investment grade off-takers. At the time, the company estimated that these projects had an aggregate capacity of more than 690 MW-DC.