Singapore-headquartered digital carbon trading exchange AirCarbon Exchange (ACX) has closed a convertible note round led by city-based decarbonisation investor TRIREC, according to an announcement.
The company did not disclose the investment amount in its statement, but The Business Times reported it was $15 million.
The convertible note series also included investments from its existing backer Mubadala Investment Company as well as the corporate venture capital arm of Banpu Public Company Limited.
“Coupled with the robust structural tailwinds that the carbon markets are facing, we are convinced that ACX will be a major driver of growth in our portfolio and a significant participant in the ecosystem,” said Mevlyn Yeo, founder and managing partner of TRIREC.
ACX told DealStreetAsia earlier this month that the company is looking to raise $50 million in its upcoming Series B round that is expected to close in March-end or early April next year.
Its existing investors include Abu Dhabi state fund Mubadala Investment Company and Deutsche Börse, the parent company of the European Energy Exchange. It is also backed by Gardenia Capital, Simco Holdings, and Abaxx Technologies, show data from DealStreetAsia’s DATA VANTAGE platform.
ACX had raised more than $10 million in its Series A and Series A1 rounds.
Blockchain-powered ACX allows corporates to trade and finance carbon credits such as financial assets. Every carbon credit on the exchange is tokenised with a record of each transaction. Businesses and consumers can earn carbon credits for doing something that has the effect of reducing or absorbing carbon dioxide emissions from the atmosphere.
The company said its client base comprises corporate entities, financial traders, carbon project developers, and other industry stakeholders.
TRIREC, which focuses on climate investing, hit a first close of $66 million for its maiden venture capital fund in September. The firm had an initial target of $75 million for the fund but is now aiming at closing the vehicle at $100 million by H1 2023.