HASI Upsizes and Prices Add-On Private Offering of $200 Million of Green Senior Unsecured Notes at a Yield to Maturity of 7.08%

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (“HASI,” “our,” or the “Company”) (NYSE: HASI), a leading investor in climate solutions, today announced that it has upsized and priced its private offering of $200 million in aggregate principal amount of 8.00% green senior unsecured notes due 2027 (the “Notes”) by its indirect subsidiaries, HAT Holdings I LLC (“HAT I”) and HAT Holdings II LLC (“HAT II,” and together with HAT I, the “Issuers”). The Notes will be additional notes and form part of the same class as the Company’s existing 8.00% green senior unsecured notes due 2027. At issuance, the Notes will be guaranteed by the Company, Hannon Armstrong Sustainable Infrastructure, L.P. and Hannon Armstrong Capital, LLC. The primary rationale for the issuance is to fund seven identified near-term opportunities in the pipeline across Behind-the-Meter, Grid-Connected and Fuels, Transport, and Nature markets and at weighted average anticipated yield of approximately 11%, resulting in high-teen Return on Equity. The offering was upsized from the previously announced $100 million in aggregate principal amount. The Notes have been priced at 102.75%, plus accrued interest with a yield to maturity of 7.08% and yield to worst of 7.02%. The settlement of the Notes is expected to occur on January 12, 2024, subject to customary closing conditions.

The Company estimates that the net proceeds from the offering of the Notes will be approximately $204.4 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. The Company intends to allocate an amount equal to the net proceeds of the offering to acquire, invest in or refinance, in whole or in part, new and/or existing eligible green projects and for general corporate purposes, but in all cases the Company will use cash equal to the net proceeds from this offering to acquire, invest in or refinance, in whole or in part, new and/or existing Eligible Green Projects. These eligible green projects may include projects with disbursements made during the twelve months preceding the issue date of the Notes and those with disbursements to be made following the issue date. Additional investment opportunities have also already been identified and are consistent with the Company’s normal course investment profile. Prior to the full investment of such net proceeds, the Company intends to apply the net proceeds to temporarily repay a portion of the outstanding borrowings under the Company’s unsecured revolving credit facility and will be re-borrowed when investments are funded. Any net proceeds from this offering not used to temporarily repay the unsecured credit facility, to invest such net proceeds in interest-bearing accounts and short-term, interest-bearing securities.