Forest Carbon nature bond

Project description

AXA took an equity stake in the company Forest Carbon and subscribed to innovative bond issued by Forest Carbon. This and additional bonds to be issued in respect of subsequent projects will support wetland forest restoration projects in Indonesia that may issue carbon credits.

“AXA’s commitment is a huge vote of confidence and the bond structure shows the sector is maturing,” said Jeffrey Chatellier, Chief Executive Officer of Forest Carbon. “The equity funds – along with AXA’s ongoing role on our board – will support Forest Carbon’s push to secure a portfolio of new restoration projects that can be financed by a growing community of investors, on the way to our goal of 250,000 hectares under management.”

Scope of work

We advised on all aspects of the transaction, including due diligence, equity investment, bond documentation and the security package.

What makes the project unique

This bond structure demonstrates a path by which green bonds can support carbon finance transactions.

Meet the Team

The team was led from our London office.