Hannon Armstrong Sustainable Infrastructure Capital, a firm that specialises in sustainable infrastructure investments, has invested $144 million in a portfolio of 10 wind projects operating in five US states which are owned by an affiliate of JP Morgan Chase, the Maryland firm said in a statement on Monday.
The firm also used the investment as collateral to raise $115 million of new fixed-rate non-recourse debt.
The 10 projects, whose total combined capacity exceeds 1,200 megawatts (MW), are unlevered and operated by leading wind industry owner-operators, such as EDPR, Invenergy, E.On and EDF, according to the statement. Power is sold into a variety of markets, including merchant markets, Hannon Armstrong said, but did not name them. It did state, however, that merchant risk is significantly mitigated by a preferred return mechanism.
“We continue our focus on seeking market opportunities where we can be senior in the capital stack – whether it is through this preferred investment, our typical senior debt investments or owning the underlying land in a given project,” Hannon Armstrong president and chief executive Jeffrey Eckel said. “These opportunities are where we see the most value in the grid connected renewable energy business.”
In addition to renewable energy, the New York-listed firm also invests –both equity and debt – in projects that improve energy efficiency or have a positive impact on the environment through more efficient use of natural resources.
Its clients are Global 1000 clients that develop and install sustainable infrastructure projects. As a result, Hannon Armstrong has become “the leading provider” of financing for energy efficiency projects for the US federal government.