Advising TASC on financing for ground-breaking carbon credit project

We have advised The African Stove Company (TASC) on its carbon credit financing agreement with Standard Bank. The funding will support a ground-breaking project that is believed to be the first of its kind in South Africa and aims to combat climate change as well as drive positive social outcomes in rural areas.

TASC distributes fuel-efficient cookstoves in Africa, generating carbon credits that are sold to off-takers who wish to combat climate change, offset their own emissions and fulfil decarbonisation strategies. With this transaction TASC will receive funding from Standard Bank to support its socially orientated projects. The bank will provide finance against the future sale price of the carbon credits and, as a result support TASC in its goal to distribute 750,000 efficient cookstoves to rural communities.

The transaction involved supporting with English law governed documents and navigating the complexities around the process for the issuance and registration of carbon credits. 

Banking and finance partner Lerika Le Grange, who led on the transaction, commented: "The Johannesburg Stock Exchange has recently launched the Ventures Voluntary Carbon Market, demonstrating the increasing growth and interest in this space. We've been delighted to advise TASC on this transformative and innovative project that will support TASC's goals to create a more sustainable world and have a positive impact in rural communities."

Shelley Estcourt, TASC CEO Africa added: "Carbon credits enable companies to offset their carbon emissions and contribute to a more sustainable future. We are delighted to have Standard Bank as a partner in fighting climate change and improving the lives of rural communities. It's been great to be able to count on Taylor Wessing's in-depth expertise to successfully complete this finance facility. We look forward to working together again.”

The deal was led by partner Lerika Le Grange with support from senior counsel Marta Pink, senior associate Katie Horbury, and associate Amy Edwards-Knight in the Banking and Finance team. Further support was provided by senior partner Dominic FitzPatrick in the Private Equity team.