Chestnut Carbon Closes Landmark $210M Debt Deal Led by JPMorgan
Deal News | Jul 22, 2025 | DBL Investors LLC
JPMorgan, Microsoft, and nature-based carbon removal startup Chestnut Carbon have concluded a significant $210 million debt arrangement. This pioneering project is structured as a non-recourse loan to advance the underfunded sector of nature-based carbon removal. DBL Partners, a backer of Chestnut Carbon, revealed that the plan is arranged similarly to energy infrastructure projects, integrating milestones, independent verification, and precise risk allocation. JPMorgan leads the effort, with participation from CoBank, Bank of Montreal, and East West Bank.
Sectors
- Renewable Energy
- Project Finance
- Financial Services
Geography
- United States – The primary entities involved, including JPMorgan and Chestnut Carbon, are based in the United States.
Industry
- Renewable Energy – The project focuses on nature-based carbon removal, a segment within the renewable energy sector.
- Project Finance – The deal applies traditional project finance structures to fund nature-based carbon removal initiatives.
- Financial Services – JPMorgan is leading the finance operation with other financial institutions, indicating active involvement in the financial services sector.
Financials
- $210 million – The total value of the debt deal to fund nature-based carbon removal projects.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Chestnut Carbon | Target Company | Company | A nature-based carbon removal startup involved in the $210M debt deal. |
| DBL Investors LLC | PE Backer | Company | The private equity firm backing Chestnut Carbon in the transaction. |
| JPMorgan | Lead Lender | Company | JPMorgan is leading the syndicate for the $210M debt deal. |
| Microsoft | Partner | Company | A partner in the initiative to fund carbon removal projects. |
| CoBank | Lending Syndicate Member | Company | Part of the syndicate providing the non-recourse loan. |
| Bank of Montreal | Lending Syndicate Member | Company | Part of the syndicate providing the non-recourse loan. |
| East West Bank | Lending Syndicate Member | Company | Part of the syndicate providing the non-recourse loan. |