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Fort Capital advises Tree Global in securing $400M carbon credit based funding

Transaction Details

Fort Capital Partners is pleased to announce its role as exclusive financial advisor to Tree Global in its financing agreement with Blue Dot Carbon Corp.

Tree Global Inc. (“Tree Global” or the “Company”) has announced that it has entered into a definitive Carbon Purchase Agreement (the “Carbon Agreement“) with Blue Dot Carbon Corp. (“Blue Dot“) with respect to reforestation projects under development in Africa.

Under the terms of the Carbon Agreement, Blue Dot will commit to fund US$400M in return for exclusive financing rights for Tree Global’s first six reforestation projects (the “Future Projects”).  Under the agreement, Blue Dot will receive 50% to 55% of the Carbon Dioxide Removal (or “CDR”) credits generated by the Future Projects, which are expected to generate 80M to 100M high-value CDR credits.

In addition to the $400M commitment to funding the Future Projects, Tree Global will receive an initial 20% equity interest in Blue Dot and a commitment of US$6M to fund Tree Global’s working capital requirements.

Tree Global is focused on reforestation projects in Africa and has projects under LOI with the governments of Uganda, Tanzania and Cameroon.  Each project is expected to generate 12M to 18M CDR credits over a period of 36 years.  The projects will create thousands of jobs in rural areas, generate significant new revenue streams to local communities and national governments, and be major drivers of biodiversity protection and restoration.

Fort Capital initiated the opportunity with Tree Global and acted as exclusive Financial Advisor to the Company on the Carbon Agreement.  Stikeman Elliott LLP acted as counsel to the Company.