TEM announces pioneering carbon credit-linked collateralised trading facility
TEM announces pioneering carbon credit-linked collateralised trading facility
Tasman Environmental Markets (TEM), Asia-Pacific’s largest voluntary carbon offset provider, today announced it has secured refinancing via a pioneering collateralised trading facility linked to carbon credits.
The successful two-year $10 million refinancing of TEM’s trading facility is part of an agreement with Catalytic Impact Capital. This agreement includes an additional $2.5 million in funding arrangements for TEM.
Jessica Dwyer, CEO of TEM, said: “We believe our collateralised trading facility linked to carbon credits is a world-first. It is an exciting moment, not just for TEM, but also the broader industry.
“It is widely agreed that Australian Carbon Credit Units (ACCUs) are a key tool for Australia’s carbon emission reduction efforts. This agreement shines a light on the fact that ACCUs can be more than just offsets on the path to net zero – they have value beyond this as a ‘financial product’. ACCUs can be a valuable class of collateral that can be used as security to finance net zero initiatives.”
Catalytic Impact Capital CEO, Paul Byrne, who structured and arranged the transaction, has been involved in other world-first transactions, including the world’s first green bond from an insurer and the world’s only additional tier 1 (AT1) gender equity bond, said: “TEM is leading the way for the industry with this innovative approach. Today’s milestone represents the opening up of a financing avenue that heretofore did not exist.
“It shows there is a way to monetise carbon credits on balance sheets without selling them – they are a financial instrument that can be used to optimize balance sheet funding.”
The refinancing announced today will help fund TEM’s ambitious growth strategy. Dwyer explains: “This refinancing will give us a solid financial position to take advantage of current market opportunities.
“We appreciate the continuous strong support from our shareholders and financial stakeholders as we continue to develop TEM over the coming years,” Dwyer adds.
Byrne commented: “The successful refinancing of this loan reflects our view of TEM as a high-performing company, backed by a leadership team with solid experience and we are proud to partner with them.”
About ACCUs
ACCUs are created and issued under the Carbon Credits (Carbon Farming Initiative) Act 2011 (Cth) (CFI Act). Each ACCU represents one tonne of carbon dioxide that is abated through an eligible offsets project (being a project which avoids the emission of greenhouse gases or removes them from the atmosphere).
ACCUs are personal property, specifically investment instruments, for the purposes of the Personal Property Securities Act 2009 (PPSA) and therefore can be used as collateral for a company’s general financing arrangements or in bespoke financings targeted at eligible offsets projects.
About TEM
Tasman Environmental Markets (TEM) is Asia-Pacific’s largest voluntary carbon offset provider. TEM empowers businesses of all sizes and consumers to achieve net-zero and make extraordinary impact by connecting them with high-quality, life-changing carbon offset projects. TEM is a Certified B Corporation, certified carbon neutral by Climate Active and meets all international standards, including being a member of IETA and Carbon Market Institute, and signatory to the Australian Carbon Industry Code of Conduct.
About Catalytic Impact Capital Pty Ltd.
Catalytic Impact Capital is an Australian Impact/ ESG-focused private credit business. Its focus is on creating bespoke, secured loan solutions for our borrowers, that provide them with the flexibility to grow their business and accelerate towards a net zero world, whilst at the same time providing our clients with secure investment opportunities and attractive risk adjusted returns.
Media enquires
Mione Collins
+61 400 528 720
Paul Byrne
Paul@catalyticimpactcapital.com
+61 450 516 426