Cyril Amarchand Mangaldas advised Sistema India on FarmCarbon carbon financing vehicle investment
The leading law firm in India, Cyril Amarchand Mangaldas advised Buen Manejo Del Campo India Private Limited (“Sistema India”), a subsidiary of Sistema.bio, Inc., as company counsel on its one-of-its-kind carbon financing vehicle, FarmCarbon, for a USD 53 million investment by BNP Paribas Asset Management Alts, British International Investment plc and Shell Foundation, Mumbai, India. FarmCarbon is focused on climate finance to scale methane-reduction in smallholder agriculture. The completion of the transaction is subject to customary conditions.
Cyril Amarchand Mangaldas undertook the following:
- (i) Structuring the transaction from an Indian law perspective, in relation to the transfer of carbon rights and issuance of carbon credits;
- (ii) Drafting, reviewing and negotiating the project documents involved in relation to the same;
- (iii) Advising in relation to the security package that could be offered to the investors; and
- (iv) Coordinating with various international counsel in relation to the transaction.
Sistema.bio is a global leader in biogas technology and climate solutions for family farmers focused on small-scale agriculture, operating in over 30 countries. FarmCarbon expands its mission by bringing carbon financing solutions directly to its global farmer network, enabling farmers to access biodigesters at discounted prices in exchange for transferring associated carbon credits. The vehicle deploys pre-financing to biogas project development, securing future emissions reductions that are later delivered to carbon credit buyers through multi-year purchase agreements. FarmCarbon is expected to finance more than 90,000 digesters globally, reducing emissions by over nine million tonnes of CO₂ equivalent.
The Cyril Amarchand Mangaldas team was led by Manasvini Raj (Partner), with support from Apoorv Jain (Principal Associate) and Sushmitha Ramkumar (Associate). Strategic inputs were provided by Santosh Janakiram (Senior Partner). On taxation aspects, the team was led by S.R. Patnaik (Partner – Head, Taxation), supported by Shivam Garg (Principal Associate), Reema Arya (Consultant) and Rhea Prasad (Associate). On data privacy and data sharing aspects, the team was led by Arun Prabhu (Partner – Co-Head, Digital | TMT) and Lakshmi Rajagopalan (Partner), with support from Kanav Khanna (Associate).
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