Today, Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital, Inc. (NYSE:HASI), a Maryland-based real estate investment trust, announced the launch of a private offering of green senior unsecured notes, subject to market conditions. The proceeds from the offering are earmarked for the repayment of outstanding borrowings under the company's unsecured credit facility and the redemption of 6.00% Senior Notes due 2025.
The notes, upon issuance, will be guaranteed by several of Hannon Armstrong's subsidiaries, including Hannon Armstrong Sustainable Infrastructure, L.P., and HAT Holdings I LLC and II LLC. The company aims to invest the net proceeds in new or existing Eligible Green Projects, which are projects designed to reduce carbon emissions or provide other environmental benefits in the United States.
These projects align with the United Nations' Sustainable Development Goals, with at least seven goals closely related to the company's strategy for impactful green financing.
Eligible Green Projects cover a range of categories such as Renewable Energy, Energy Efficiency, Pollution Prevention and Control, Clean Transportation, Biodiversity, and Sustainable Water and Wastewater Management.
The company's investment team, in collaboration with its Sustainability and Impact team, is responsible for evaluating and selecting projects according to established criteria. Hannon Armstrong's investment process includes quantifying potential environmental impacts and adhering to its Sustainability Investment Policy.
The management of the proceeds from the notes will be closely tracked, with the company intending to allocate the proceeds within two years following the offering. Cash equivalent to the net proceeds will be managed in interest-bearing accounts or short-term, interest-bearing securities, or may be temporarily used to repay certain indebtedness until allocated to the Eligible Green Projects.
Hannon Armstrong plans to provide annual updates on the allocation of the net proceeds, which will be available on the company's website. These updates will include information on specific projects funded, their associated carbon emission reductions, and other qualitative and quantitative impact indicators.
The company has also obtained a Second-Party Opinion to ensure the alignment of its Green Bond Framework with the 2021 Green Bond Principles and plans to engage an independent third-party annually for assurance on the allocation of proceeds to Eligible Green Projects. This information is based on a press release statement from Hannon Armstrong.
In other recent news, Hannon Armstrong's stock target has been adjusted by Citi to $8.30, maintaining a "Buy" rating. This change comes after a reassessment of the company's sales forecast for the years 2024 through 2026, with new estimates standing at 515k, 1.01mn, and 1.94mn units. The gross profit margin (GPM) projections for the same period have also been updated, showing a positive trend. This has led to an adjustment in the net profit (NP) forecast for Hannon Armstrong.
In the meantime, Hannon Armstrong's price target has been increased to $40 by TD Cowen, keeping its "Buy" rating. This adjustment follows an analysis of the company's first quarter 10Q filing and the formation of a $2 billion partnership with KKR, named CarbonCount Holdings 1 (CCH1). This partnership aims to enhance capital efficiency and scalability, with each company committing $1 billion.
On the other hand, China-based Hesai Group has initiated legal action against the U.S. government, contesting its inclusion on a Department of Defense list suggesting connections to Beijing's military. Hesai, which specializes in lidar technology for autonomous vehicles, disputes any ties to Chinese government or military influence. The company is seeking a court order to have its name removed from the list. These are recent developments in the business world.
InvestingPro Insights
As Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) steers towards financing environmentally beneficial projects, investors may find the company's financial health and performance indicators relevant.
According to real-time data from InvestingPro, HASI's market capitalization stands at $3.57 billion, with a P/E ratio of 15.2, reflecting its earnings in relation to its share price. Notably, the company's revenue has grown by 35.19% over the last twelve months as of Q1 2024, indicating robust financial growth in a challenging economic climate.
InvestingPro Tips highlight HASI's commitment to its shareholders, evidenced by raising its dividend for 5 consecutive years and maintaining dividend payments for 12 consecutive years. This consistency is a positive sign for investors looking for stable income streams.
Moreover, the company's strong return over the last three months, with a total return of 20.56%, suggests a bullish trend in investor sentiment. For those considering a deeper dive into HASI's financials, there are additional insights available on InvestingPro, including 6 more tips that could guide investment decisions.
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