ROCKY HILL, Conn. and
ANNAPOLIS, Md., Dec. 17, 2015 /PRNewswire/ -- The
Connecticut Green Bank ("Green Bank") and Hannon Armstrong (NYSE: HASI) have reached an
agreement that will increase the deployment of energy efficiency,
solar and other clean energy projects throughout the Connecticut commercial and industrial
sector.
Under the terms of the agreement, Hannon
Armstrong will provide access to up to $100 million in funding for green energy projects
for commercial and industrial buildings and businesses. The
agreement supports the Green Bank's successful C-PACE (Commercial
Property Assessed Clean Energy) program. The innovative financing
structure allows the Green Bank to effectively leverage private
capital while providing Hannon
Armstrong with the ability to access a high quality, rapidly
growing class of assets.
The agreement between the Green Bank and Hannon Armstrong will streamline the process
building owners currently undergo to source competitive financing
for comprehensive energy projects. Hannon
Armstrong brings its expertise in programmatic financing and
risk assessment, as well as predictability in execution, while the
improved access to financing will enable Connecticut businesses to achieve even more
meaningful energy savings with zero upfront costs.
The agreement also helps the Green Bank expand C-PACE, the
very successful commercial green energy financing program. C-PACE
provides commercial, industrial, nonprofit and multi-family
property owners access to affordable, long-term financing
for meaningful energy upgrades to their buildings. By enabling
building owners to finance qualifying energy efficiency and clean
energy improvements through a voluntary assessment on their
property tax bill, more comprehensive energy improvements that
would otherwise be difficult to afford are made possible. With 100%
financing offered over a term of up to 20 years, building owners
are able to complete projects that not only significantly lower
energy costs but also increase their bottom lines while being cash
flow positive from day one. While each project will be individually
reviewed and underwritten, capital provided under the program is
secured by a lien on the property, which greatly reduces the
investment risk and associated cost of capital. The Green Bank has
already closed over $50M in C-PACE
projects, and has a growing pipeline that represents nearly
$50 million more in already approved
projects. Demand is on a rapid growth trajectory, creating the need
for more capital to support the program.
"This agreement will help us streamline the approval process for
commercial loans and ensure a reliable source of capital for our
businesses and institutions," said Bryan
Garcia, the President and CEO of Connecticut Green Bank.
"But more importantly, this transaction demonstrates that private
investors are ready to put their capital behind green energy
projects in the commercial sector. The Green Bank can leverage this
infusion of private capital to accelerate the growth of green
energy, while putting fewer ratepayer dollars at risk. That
establishes a marketplace where Connecticut businesses can thrive and allows
the Green Bank to further leverage its assets."
"Investing in energy efficiency and clean energy projects
through the Connecticut Green Bank's C-PACE program provides
Hannon Armstrong a new scalable
channel partner to cost effectively deploy capital," said
Jeffrey Eckel, President & CEO
of Hannon Armstrong. "We applaud the
Green Bank's leadership in developing this market."
"We in Connecticut have been
innovators with our first-in-the-nation Green Bank. We've shown
that we can tackle global warming with smart, private-sector
solutions and by leveraging private dollars to incentivize a shift
to green technologies. Agreements like these are what's making
Connecticut a national leader,"
Governor Dannel P. Malloy said. "We
are reducing carbon emissions like never before as the world works
together to mitigate climate change. This agreement is yet another
positive step towards our goals of making the world a greener place
for generations to come."
Garcia noted that The Alliance to Save Energy's
CarbonCount™ metric will be used to
provide third party certification of reductions in greenhouse gases
resulting from investments made through this agreement. "The
CarbonCount™ certification brings an
important and independent assessment of a project's integrity. It
carries a distinction that will help encourage the market alongside
the State of Connecticut to
further invest in decreasing greenhouse gas emissions," continued
Garcia.
The agreement with Hannon
Armstrong is the largest facility ever with a state green
bank. Since its creation in 2011, the Green Bank has been a leader
in the movement toward green energy solutions and has been cited as
an example of "best practices" in other states.
About The Connecticut Green Bank (formerly CEFIA)
The Green Bank was established by Connecticut's General Assembly on July 1, 2011 as a part of Public Act 11-80. This
quasi-public agency superseded the former Connecticut Clean Energy
Fund. The Green Bank's mission is to lead the green bank movement
by accelerating private investment in clean energy deployment
within Connecticut and to achieve
economic prosperity, job creation and energy security throughout
the state. As the nation's first full-scale green bank, the
organization leverages public and private funds to drive investment
and scale up clean energy deployment in Connecticut. Please visit
www.ctgreenbank.com.
About Hannon Armstrong
Hannon Armstrong (NYSE: HASI)
provides debt and equity financing to the energy efficiency and
renewable energy markets. The company focuses on providing
preferred or senior level capital to established sponsors and high
credit quality obligors for assets that generate long-term,
recurring and predictable cash flows. Based in Annapolis, Maryland, Hannon Armstrong elected and qualified to be
taxed as a real estate investment trust (REIT) for federal
income-tax purposes, beginning with its taxable year ended
December 31, 2013.
Contacts:
Connecticut Green Bank
Dean Pagani, SVP, McDowell Jewett
Communications
Pagani@mj-comm.com
860-918-5075
Hannon Armstrong
Amanda Cimaglia
acimaglia@hannonarmstrong.com
410-571-6180
Logo -
http://photos.prnewswire.com/prnh/20130808/PH61447LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/green-bank-and-hannon-armstrong-partner-for-commercial-clean-energy-financing-300194976.html
SOURCE Hannon Armstrong Sustainable Infrastructure Capital,
Inc.