BURN Manufacturing - Key Carbon and Cartesian carbon financing (Mar 2024)

Terms

Announced

21 Mar 2024

Instrument

Debt

Amount

US$18.0mReported as US$18 million investment (US$12 million upfront)

Source

newsfilecorp.com

Parties

Project developer

BURN Manufacturing

Recipient type

Technology company

Country

Kenya

Capital providers

Capital providers and the amount counted for each

Party	Role	Amount	Basis
Key Carbon	Investor	US$9.00m	Estimated: an even share, 1 of 2
Cartesian Sustainable Finance 1, LLC	Investor	US$9.00m	Estimated: an even share, 1 of 2

Carbon

Pathway

Cookstoves

What happened

Key Carbon and Cartesian Sustainable Finance 1, LLC, an affiliate of Cartesian Capital Group, announced on 21 March 2024 a US$18 million investment to fund the production and distribution of low-emission cookstoves by BURN Manufacturing across Africa, tied to the generation of carbon credits. US$12 million of the investment was provided upfront: BURN's own release describes an investment of over US$12 million and the successful completion of the transaction, and Carbon Herald reports that BURN has received a US$12 million investment from Key Carbon. The programme covers electric cookstoves in Kenya, Tanzania, Uganda and Zambia and biomass stoves in Nigeria, the DRC, Tanzania and Mozambique over the next two years.

Kumo note

- Funding is tied to the generation of carbon credits from cookstove production and distribution across Africa: US$18m was committed by Key Carbon and Cartesian, of which US$12m was provided upfront. - Key Carbon, which rebranded from Carbon Neutral Royalty, is one of BURN's largest investors, and the transaction is described by its CEO as bringing institutional investors into the voluntary carbon market.

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