UNDO - Inlandsis delivery-aligned debt financing behind Microsoft offtake

Terms

Announced

21 Oct 2025

Instrument

Debt

Amount

US$5.00mReported as (est>US$5m)Estimate: floor of over US$5m reported by carboncredits.com; the parties have not disclosed the amount

Source

un-do.com

Parties

Project developer

UNDO

Country

Canada

Capital providers

Capital providers and the amount counted for each

Party	Role	Amount	Basis
Inlandsis Fund (Fondaction Asset Management)	Lender	US$5.00m	Sole provider: the whole transaction

Carbon

Pathway

Enhanced rock weathering

Backed by offtakes from

• Microsoft

· signed before this financing

Structure and cover

Insurance type

Delivery

Insurance provider

CFC (insurer); broker not stated

What happened

UNDO, the enhanced rock weathering developer, announced on 21 October 2025 a debt financing from Inlandsis, a Canadian climate fund managed by Fondaction Asset Management, that supplies the capital to deliver Microsoft's purchase of 28,900 tonnes of permanent carbon removal, the third Microsoft purchase from UNDO after 5,000 tonnes in 2023 and 15,000 tonnes in 2024. The project spreads 90,000 tonnes of wollastonite across about 30,000 acres of Canadian farmland in Ontario and beyond; delivery runs to 2036. UNDO describes the structure as delivery-aligned: capital follows fieldwork and issuance follows evidence, with lenders repaid from paid issuance. It is Inlandsis's first enhanced rock weathering investment and the first Canadian investment of its second fund. The deal is underwritten by CFC, the specialist insurer. Amount, tenor and security are not disclosed; the value shown is an estimate.

Kumo note

- Delivery-aligned debt: capital is released as fieldwork progresses and lenders are repaid from Microsoft's paid issuance, so repayment is tied to verified delivery of the 28,900 tonnes rather than to a date. UNDO presents it as a new way to finance enhanced rock weathering, and CFC underwrote it with cover described as paying out if project milestones are not met, according to Carbon Herald. - Tonnage is reported, which, if assumed around US$350 a tonne, would lead to an assumed lending deal size of over US$5m.

Next step