SunStrong

Date: 30-Nov-2018

Issue date: 28-Nov-2018 Maturity date: N/A Tenor: N/A
Issuer Name

SunStrongAmount Issued

USD400m

Country of risk

USA

CBI Database

IncludedIssuer Type1ABS

Bond Type

Solar ABS

Green Bond Framework

N/A

Second party opinion

N/A

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

GB1 (Moody’s)☒ Energy☒ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emissionvehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☒ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Waste to energy☐ Industry: components ☐Adaptation & resilience

Use of Proceeds☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose &paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

SunPower is willing to report via Hannon Armstrong’s website annual updates forthe entire time that the notes are outstanding, including disclosure on theenvironmental performance of the solar PV projects, such as estimated renewable
power generated and carbon emissions saved by the projects in total and per
USD1000 invested.

Company information

SunStrong is a joint venture between SunPower (CA, USA) and Hannon Armstrong(MD, USA). SunStrong will be the sole obligor of the Notes. Hannon Armstrongqualifies as a real estate investment trust and its projects include energy efficiency
projects that reduce a building’s or facility’s energy usage or cost throughenhancing or installing various building components. SunPower is an energy
company that designs and manufactures PV cells.

Firsts, records andcertifications

Second largest solar ABS issued in 2018 following Vivint Solar’s USD932m deal inJune 2018.

Proceeds description

The Notes are secured and payable from the cash flow generated by more than
37,500 residential solar leases owned by SunPower.

Climate Bonds view

ABS are a very important tool to finance the transition to a low carbon economy byproviding a secured source of financing. The price of producing electricity fromsolar panels has been consistently decreasing and it’s becoming increasingly
economic for households to install rooftop solar. This is even more so in California,
where most new units built after 1st January 2020 will be required to include solar
systems as part of the standards adopted by the California Energy Commission.

Underwriters
Deal comments
Credit Rating
Pricing summary

Interest rate: fixed 5,68% p.a.

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government,
non-financial corporate, sovereign