Hudson Sustainable Group Closes Inaugural Green Bond

NEW YORK–(BUSINESS WIRE)–Hudson Sustainable Group (Hudson) announced today that it has closed the firm’s inaugural green bond, with the issuance of US$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 US$10 million structurally subordinated green loan provided by Societe Generale, builds on Hudson’s long track record in the renewable energy space.

The closing of the green bond and the green loan is consistent with Hudson’s focus on investing in companies and assets that promote the sustainability of the physical and social environment, consistent with the United Nations Sustainable Development Goals. As part of this mission, 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.

“This inaugural green bond continues Hudson’s mission to promote sustainable investments,” said Neil Auerbach, Hudson’s Chief Executive Officer and Managing Partner. “The projects underlying this bond will generate a positive environmental impact and contribute to the U.N.’s Sustainable Development Goals. We are proud to have partnered with Allianz Global Investors, a world-renowned investment management firm with a wealth of experience deploying infrastructure debt investments.”

“It gives us great pleasure to have worked with Hudson throughout 2020 – a notably challenging year for all – in closing an important infrastructure project in a key region and ending the year on a high note,” said Paul David, Director of Infrastructure Debt at AllianzGI.

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

To view additional details on Hudson’s sustainable bond and loan issuance strategy, please visit https://www.hudsonsustainable.com/esg-initiatives to download the Framework and second-party opinion.

About Hudson

Hudson Sustainable Group (“Hudson”, or the “Company”) is focused on investing in the sustainability sector globally, with an emphasis on renewable energy, resource efficiency, and other aspects of sustainable technology. Founded in 2007, Hudson acts as a principal investor and manager and has made 20 investments to date in 26 countries. For more information, visit www.hudsonsustainable.com.

About Allianz Global Investors

Allianz Global Investors (“AllianzGI”) is a leading active asset manager with 754 investment professionals in 25 offices worldwide and managing US$641 billion in assets for individuals, families and institutions.

Active is the most important word in our vocabulary. Active is how we create and share value with clients. We believe in solving, not selling, and in adding value beyond pure economic gain. We invest for the long term, employing our innovative investment expertise and global resources. Our goal is to ensure a superior experience for our clients, wherever they are based and whatever their investment needs.

Active is: Allianz Global Investors

Data as of September 30, 2020