HASI prices $500M green junior subordinated notes at 7.85%
What's the deal? HA Sustainable Infrastructure Capital priced $500 million of 7.850% Green Junior Subordinated Notes due 2057 on November 9, 2026, in a post-IPO debt offering. Mizuho SecuritiesDealroom has a profile for this one. Try Dealroom → USA and BofA SecuritiesDealroom has a profile for this one. Try Dealroom → led a group of 14 joint book-running managers. The notes were issued at par, with settlement set for November 24, 2026.
The fine print: The 7.850% coupon runs through May 31, 2032, then resets to the five-year US Treasury rate plus 3.164%, with a floor at 7.850%. The notes carry ratings of Ba1 from Moody's, BB from S&PDealroom has a profile for this one. Try Dealroom →, and BB from FitchDealroom has a profile for this one. Try Dealroom →. Six entities, including Hannon Armstrong Capital and the company's operating partnership, guarantee the issue.
Why now? This is HASI's third large green junior-subordinated note offering in about a year. It sold $500 million at 8.00% in November 2025 and $600 million at 7.125% in February 2026, both due 2056. The new 7.85% coupon lands between those two, a sign that long-term borrowing costs remain material.
What's the endgame? Rating agencies give these subordinated notes partial equity credit, letting HASI fund investments while limiting common-stock issuance. That matters for a growing platform: managed assets hit $19 billion in the third quarter of 2026, up 27% year over year.
What could go wrong? The structure carries flexibility that favours the issuer. HASI can defer interest for up to 10 consecutive years per deferral period. It can also redeem at 101% for a tax credit or change-of-control event, and at 102% for a rating agency event.
The signal: HASI's repeated issuance shows both the scale and the cost of financing clean-energy infrastructure. The company keeps tapping debt markets to fund expansion, but each round underscores how capital-intensive that growth is — and how much lenders still charge for it.
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