The carbon removal-linked instrument will provide financing for Applied Carbon’s biochar project, while tying investor payouts to the generation and delivery of verified carbon credits.
Citigroup said it closed a US$72m carbon removal-linked note to support a biochar project being developed by Applied Carbon in Texas. The note differs from conventional bonds by forgoing traditional coupon payments The 3.5-year principal-protected instrument channels upfront capital into the project while linking investor returns to the generation and delivery of verified carbon removal credits. The company described the transaction as an outcome-based financing structure aimed at supporting