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Hannon Armstrong

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Challenge Commitment

$250

Million

Progress as of December 2013

$391.8

Million

BACKGROUND

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) makes debt and equity investments in sustainable infrastructure projects. Hannon Armstrong targets profitable sustainable infrastructure projects that increase energy efficiency, provide cleaner energy, positively impact the environment, or make more efficient use of natural resources.

Served market

Hannon Armstrong provides and arranges debt and equity financing primarily for three types of sustainable infrastructure projects:

  • Energy Efficiency Projects: projects, typically undertaken by energy services companies, or ESCOs, which reduce a building’s or facility’s energy usage or cost through the design and installation of improvements to various building components, including heating, ventilation and air conditioning systems, or HVAC systems, lighting, energy controls, roofs, windows and building shells;
  • Clean Energy Projects: projects that deploy cleaner energy sources, such as solar, wind, geothermal and biomass as well as natural gas; and
  • Other Sustainable Infrastructure Projects: projects, such as water or communications infrastructure, that reduce energy consumption, positively impact the environment or make more efficient use of natural resources.

Leading energy efficiency provider

Hannon Armstrong began its business more than 30 years ago, and since 2000, using its direct origination platform, has provided or arranged over $4 billion of financing in more than 450 sustainable infrastructure transactions. Over this period, Hannon Armstrong has become the leading provider of financing for energy efficiency projects for the U.S. federal government. In conjunction with its initial public offering (IPO) on April 18, 2013, the firm changed its organizational structure in order to allow it to continue its business as a real estate investment trust (REIT). Hannon Armstrong's strategy in converting to a REIT and in undertaking its IPO was to expand its proven ability to serve the rapidly growing sustainable infrastructure market by increasing its capital resources, enhancing its financial structuring flexibility, expanding the types of projects and end-customers they pursue, and selectively retaining a larger portion of the economics in the financings they originate, while delivering attractive risk-adjusted returns to their stockholders.