ANNAPOLIS, Md. & NEW YORK - Hannon Armstrong (NYSE:HASI) Sustainable Infrastructure Capital, Inc. (NYSE: HASI), in partnership with global investment firm KKR (NYSE: KKR), announced the creation of CarbonCount Holdings 1 LLC (CCH1), a joint venture aimed at funding climate-positive projects. The agreement, signed on May 4, 2024, outlines an initial capital commitment of up to $1 billion from each company, totaling up to $2 billion in investments over the next 18 months.
HASI will source and manage the investments for CCH1, continuing its role as the client interface. The company will also utilize its proprietary CarbonCount® scoring tool to measure the avoided emissions of the investments. The focus will be on behind-the-meter, grid-connected projects, renewable natural gas, and transportation projects.
Upon closing, CCH1 will be seeded with assets that represent approximately 10% of the total committed amount. This move is part of a strategic shift for HASI towards a more capital-light business model, aiming to reduce its dependence on public equity markets for growth, as stated by HASI's CFO Marc Pangburn.
Jeffrey A. Lipson, President and CEO of HASI, emphasized the alignment of this partnership with their Climate Clients Assets strategy, which is expected to scale the business and capitalize on a pipeline of opportunities. Cecilio Velasco, Managing Director on KKR’s Infrastructure team, also expressed enthusiasm for the collaboration, noting HASI's portfolio and future opportunities as highly complementary to KKR's clean energy investing strategy.
KKR, with over 15 years in infrastructure investing, has allocated more than $15 billion in renewable energy and climate-related investments. BloombergNEF ranks KKR as the 10th largest owner of solar assets in the U.S., with the investment for CCH1 coming from its core infrastructure strategy.
InvestingPro Insights
In light of Hannon Armstrong Sustainable Infrastructure Capital's (HASI) new collaboration with KKR to fund climate-positive projects, a closer look at HASI's financial metrics and strategic moves offers investors additional context. With a market capitalization of approximately $3.01 billion and a robust P/E ratio of 18.08, HASI stands as a significant player in the sustainable infrastructure space. The company's commitment to dividend growth is underscored by a 6.37% dividend yield and a history of raising its dividend for 5 consecutive years, showcasing a strong return to shareholders.
InvestingPro Tips indicate that HASI has maintained dividend payments for 12 consecutive years, a testament to its financial stability and investor-friendly approach. The company's liquid assets also surpass its short-term obligations, providing further confidence in its financial health. Notably, HASI has experienced a large price uptick over the last six months, with a total return of 32.84%, reflecting a positive market sentiment and investor optimism about the company's future.
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The strategic partnership between HASI and KKR, coupled with HASI's financial robustness and market performance, paints a promising picture for stakeholders interested in sustainable investments and the growth potential of climate-positive projects.
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