Green Bonds
Overview
At HASI, we are committed to ensuring all debt we issue is dedicated to eligible green projects. Typically, for corporate unsecured debt, we pursue independent verification. Since 2013, we have raised approximately $8.7 billion of green debt, including securitizations and non-recourse and corporate issuances.
Green Debt Issuances
Sustainable Yield Bonds
Off Balance Sheet
Securitizations typically of public
sector receivables and managed off
balance sheet
Sustainable Yield Bonds
On Balance Sheet
Non-recourse, asset-backed debt
managed on balance sheet
Corporate Green Bonds
Senior unsecured or convertible bonds
issued as corporate obligations
Other Green Debt
Senior unsecured syndicate
revolving line of credit
* From 2013 IPO through 12/31/22, including $200m of 0% CarbonCount-based exchangeable that closed in April 2022
** ICMA’s Green Bond Principles applicable to corporate unsecured green bonds and convertible green bonds due 2023 but not necessarily to convertible green bonds due 2022
*** Represents total commitments of our Sustainability Linked Unsecured RLOC, Sustainability Linked Term Loan A, and Green Carbon Count Commercial Paper Program. As of 12/31/22, our outstanding debt under the Sustainability Linked Unsecured RLOC, Sustainability Linked Term Loan A, and Green Carbon Count Commercial Paper Program was $0m, $383m and $0m, respectively.
Green Bond Framework
In alignment with ICMA’s Green Bond Principles (2018)3
“Eligible Green Projects” means projects intended to reduce carbon emissions or provide other environmental benefits in the following categories:
Behind-the-Meter (“BTM”): Distributed building or facility projects that reduce energy usage or cost through the use of solar generation and energy storage or energy-efficient improvements, including heating, ventilation, and air conditioning systems (“HVAC”), lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems;
Grid-Connected (“GC”): Projects that deploy cleaner energy sources, such as solar and wind to generate power where the off-taker or counterparty is part of the wholesale electric power grid; and
Fuels, Transport & Nature (“FTN”): Projects that decarbonize high-emitting economic sectors beyond electricity use, including renewable natural gas (RNG) plants, transportation fleet enhancements, and ecological restoration projects, among others.
As part of our investment process, we intend to calculate the ratio of the estimated first year of metric tons of carbon emissions avoided (or that will be avoided) by the investment divided by the capital to be invested to understand the impact the investment is expected to have on climate change.
We intend to utilize the net proceeds of this offering to acquire or refinance, in whole or in part, Eligible Green Projects. Eligible Green Projects may include projects with disbursements made during the twelve months preceding the issue date of the Notes and projects with disbursements to be made following the issue date. Prior to the full investment of such net proceeds, we intend to invest such net proceeds in interest-bearing accounts and short-term, interest-bearing securities which are consistent with our intention to qualify for taxation as a REIT.
During the term of the Notes, until such time as the net proceeds from this offering have been fully allocated to Eligible Green Projects, we will publish annual updates on our website detailing, at a minimum, the allocation of the net proceeds from this offering to specific Eligible Green Projects along with the associated CarbonCount®.
3) ICMA’s Green Bond Principles applicable to corporate unsecured green bonds and convertible green bonds due 2023 but not necessarily to convertible green bonds due 2022
Corporate Green Bonds4
| SECURITY NAME | INDEPENDENT VERIFIER | CUSIP | MATURITY DATE | ISSUED VOLUME | COUPON RATE | CONVERSION PREMIUM | BOND TYPE | RATINGS | CARBONCOUNT®5 |
|---|---|---|---|---|---|---|---|---|---|
| HASI-GRB-002 | Ernst and Young | 418751 AB9 | 4/15/2025 | $400,000,000 | 6.00% | N/A | Senior Unsecured | S&P: BB+ Fitch: BB+ | 2.01 |
| HASI-GRB-003 | Ernst and Young | 418751 AD5 | 9/15/2030 | $375,000,000 | 3.75% | N/A | Senior Unsecured | S&P: BB+ Fitch: BB+ | 0.35 |
| HASI-GRB-004 | Ernst and Young | 41068X AD2 | 8/15/2023 | $143,750,000 | 0.00% | 27.5% | Convertible Senior Unsecured | S&P: BB+ Fitch: BB+ | 0.29 |
| HASI-GRB-005 | Ernst and Young | 418751 AE3 | 6/15/2026 | $1,000,000,000 | 3.375% | N/A | Senior Unsecured | S&P: BB+ Fitch: BB+ | 0.39 |
Green CarbonCount® Commercial Paper
| SECURITY NAME | INDEPENDENT VERIFIER | MATURITY DATE | ISSUED VOLUME | DEBT TYPE | CARBONCOUNT®5 | AVOIDED EMISSIONS6 | RENEWABLE OR AVOIDED GENERATION6 | TECHNOLOGY | GEOGRAPHIC | MARKET |
|---|---|---|---|---|---|---|---|---|---|---|
| HASI-GCCP-001 | Ernst and Young | 3/10/2022 | $50,250,000 | Green Commercial Paper | 1.66 | 0 (2021) | 0 (2021) | Wind | National | GC |
4) Excludes convertible green bonds due 2022
5) This is the CarbonCount® metric resulting from the allocation of the net proceeds from this offering to specific Eligible Green Projects. CarbonCount® is the ratio of the estimated first year of metric tons of carbon emissions avoided (or that will be avoided) by the investment divided by the capital to be invested to understand the impact the investment is expected to have on climate change. In this calculation, we use emissions factor data, expressed on a CO2 equivalent basis, from the U.S. Government or the International Energy Administration to estimate a project’s energy production or savings to compute an estimate of metric tons of carbon emissions that will be avoided. In addition to carbon, we also consider other environmental attributes, such as water use reduction, stormwater remediation benefits, or stream restoration benefits.
6) Avoided emissions and generation for 2021 are zero as the projects to which these proceeds were allocated were not placed in service until 2022.
Affiliations
HASI is a proud member of the Nasdaq Sustainable Bond Network. Copyright, Nasdaq 2021.
HASI’s notes meet the environmental eligibility criteria for green bonds as defined by the International Capital Market Association’s Green Bond Principles.