HA Sustainable Infrastructure Capital, Inc. (HASI) priced a $600 million issuance of 7.125% green junior subordinated notes due 2056, with a settlement date of February 27, 2026. The notes are guaranteed on a subordinated basis by a group of Hannon Armstrong entities, and the company expects net proceeds of approximately $592.2 million after underwriting discounts and offering expenses.
The proceeds will be used to repay portions of the company’s unsecured revolving credit facility and commercial paper program, to redeem or reduce the outstanding principal of its 8.00% senior notes due 2027, and any remaining funds will be directed toward acquiring, investing in, or refinancing eligible green projects, with excess cash placed in short‑term interest‑bearing instruments.
This transaction expands HASI’s debt capacity while preserving equity dilution, supporting its growth initiatives such as the CarbonCount Holdings 1 (CCH1) partnership with KKR and the SunZia structured equity investment. The company has long positioned itself as a leader in green financing, having launched the first U.S. green commercial paper program in 2021 and using its proprietary CarbonCount tool to evaluate the environmental impact of its investments.
Financially, HASI maintains a healthy liquidity profile, with a current ratio of 3.54 and a BB+ rating from S&P Global Ratings with a positive outlook. The new notes allow the company to lock in long‑term capital, manage interest‑rate risk, and strengthen its capital structure in a low‑interest‑rate environment.
Market reaction to the announcement was positive: TD Cowen raised its price target for HASI to $50 from $40, maintaining a Buy rating, reflecting confidence in the company’s capital structure and growth prospects.
Management emphasized the strategic importance of the transaction: CEO Jeff Lipson noted that “2025 was, in many regards, the strongest year of operational and financial results in our history,” while CFO Marc Pangburn added that “this transaction further increases the resilient, non‑cyclical nature of our business.”
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