Hudson Sustainable Group Closes Inaugural Green Bond

(Credit: Pixabay)

by | Jan 22, 2021

(Credit: Pixabay)

Hudson Sustainable Group recently announced that it has closed the firm’s inaugural green bond, with the issuance of $96.8 million Investment-Grade rated fixed rate secured notes due in 2043. The assets underlying the notes are a portfolio of six operating solar PV facilities located in Uruguay, with a total generating capacity of 84.3 MWdc. These projects have long-term power purchase agreements with UTE, the Uruguayan state-owned power utility.

The green bond closed on December 22, 2020. Clients of Allianz Global Investors participated as the sole noteholders in the offering.

Mitsubishi UFJ Financial Group and SG Americas Securities, LLC (Societe Generale) acted as placement agents and green bond structuring advisers. Greenberg Traurig LP and Guyer & Regules acted as the Issuer’s NY and Uruguayan counsel respectively. Proceeds from the green bond were used to refinance an existing construction loan facility. The closing of the green bond, along with a $10 million structurally subordinated green loan provided by Societe Generale, builds on Hudson’s long track record in the renewable energy space.

Hudson has published its Green Finance Framework. The framework is based on the Green Bond Principles 2018 and the Green Loan Principles 2020, a set of voluntary guidelines that aim to promote integrity and transparency in the green bond and loan markets. The framework will support Hudson’s mandate to finance projects that promote low carbon energy sources, resource efficiency, efficient production methods, sustainable transportation, infrastructure resiliency, and human development and safety.

Sustainalytics, a provider of ESG research and ratings, provided a second-party opinion that independently confirmed the environmental benefits of Hudson’s Green Finance Framework.

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