Professional Services. Page prepared September 2025. FG Capital Advisors acts as arranger and advisor via regulated partners.
Carbon Stream Financing (Pre-Issuance Revenue Financing)
We provide upfront capital to developers secured against future carbon credits. The structure is a forward purchase at a discount, with clear delivery windows and quality gates. Funds cover validation, monitoring, and operational costs so the project crosses the gap before first issuance.
Service Offering
Forward purchase of credits with prepayment. Optional price floors or collars. Escrow or LC mechanics. Assignment of proceeds and registry controls to protect delivery.
Target Client & Pain Point
Developers facing the pre-issuance “valley of death” with costs due and no credit sales yet. Capital released when milestones are verified.
High-Ticket Justification & Model
Specialized merchant banking. Fees include structuring and success. Returns come from the spread between the discounted forward price and market value at issuance. Typical deals USD 0.5–10 million plus.
Core Terms
Tenor aligned to verification and first deliveries. Prepayment percentage set against forecast vintages. Make-good rules, substitute volumes, and change-in-law clauses.
Eligibility
Methodology selected, feasible MRV, tenure and stakeholder files, VVB engaged or shortlisted, and a credible delivery calendar by vintage.
Offer Snapshot
Scope
- Structure forward purchase with prepayment and delivery schedule.
- Set price protection: floor or collar where appropriate.
- Define quality gates, leakage rules, and reversal coverage.
- Escrow or LC for prepayments, registry assignments, and waterfalls.
- Option to arrange offtake or syndicate streams post-issuance.
Timeline
- T+1 to T+2 weeks: Intake, data room review, and scoping call.
- T+3 to T+4 weeks: Term sheet with pricing path and milestones.
- T+5 to T+6 weeks: Diligence, legal docs, escrow or LC setup.
- T+6 to T+8 weeks: First prepayment on conditions precedent. Draws tied to verified milestones.
What We Need To Start
Documents
- PDD or outline, methodology, maps, tenure, and stakeholder records.
- MRV plan, VVB status, delivery forecast by vintage, and risk register.
- Corporate KYC, sanctions screens, and signatory proofs.
Deal Inputs
- Requested prepayment size and milestone schedule.
- Preferred price protection and delivery windows.
- Escrow or LC preferences and registry account details.
Key Questions
How do fees work
Structuring retainer and success economics tied to funded amounts. Forward price discount reflects risk, tenor, and delivery profile.
How is downside managed
Floors or collars, delivery flex bands with make-good windows, substitute volumes from the same project family, and escrowed flows.
Who holds funds
Reputable escrow banks or LC-issuing banks. Releases occur on milestone verification and document checks.
What we do not do
We do not certify credits or guarantee prices. Verification and standards decisions sit with the registry and VVB.
Contact Us About Carbon Stream Financing
Send your project pack and target prepayment size. We will confirm scope, pricing mechanics, and a path to first draw.
Contact UsDisclaimer. FG Capital Advisors provides advisory and arrangement services. Terms are set by contracting parties after diligence. Funding and pricing depend on verification outcomes, counterparty credit, and market conditions.
