ABOUT MARKETS ESG INVESTORS NEWS CAREERS CONTACT GREEN BONDS Overview At Hannon Armstrong, 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 $7.1 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 Green Debt ~$7.2 Billion* SYBs Off B/S SYBs On B/S Corporate Green Bonds Other Green Debt $0.5b*** $2.1b** $0.5b $4.1b * From 2013 IPO through 9/30/21 ** Corporate Green Bonds: Represents total commitments vs $25m of outstanding debt as of 9/30/21 *** Represents total commitments of our Sustainability Linked Unsecured RLOC and Green Carbon Count Commercial Paper Program.; as of 9/30/21, our outstanding debt under the Sustainability Linked Unsecured RLOC and Green Carbon Count Commercial Paper Program was $25m and $0, 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 Sustainable Infrastructure: Upgraded transmission or distribution systems, water, and stormwater infrastructure, seismic retrofits, and other projects, that improve water or energy efficiency, increase resiliency, positively impact the environment, or more efficiently use natural resources. 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 (likely) 418751 AE3 6/15/2026 $1,000,000,000 3.375% N/A Senior Unsecured S&P: BB+ Fitch: BB+ TBD 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. Affiliations Hannon Armstrong is a proud member of the Nasdaq Sustainable Bond Network. Copyright, Nasdaq 2021. Hannon Armstrong’s notes meet the environmental eligibility criteria for green bonds as defined by the International Capital Market Association’s Green Bond Principles. 1906 Towne Centre Blvd Suite 370 Annapolis, MD 21401 Phone 410-571-9860 Fax 410-571-6199 Quote on minimum 15 minute delay. Stock data is provided by Yahoo Finance and displayed here for informational purposes only and should not be considered as investment advice. 2020 Annual Report Download © 2021 Hannon Armstrong | Legal | Sitemap