PACE Equity, in partnership with Calvert Impact Climate, Inc., closed the initial offering of the Cut Carbon Note. This first-of-its-kind green bond allows investors to contribute to the development of low-carbon commercial real estate funded by C-PACE.

An asset-backed, investment-grade, fixed-income product, the Cut Carbon Note finances energy-efficient and carbon-reducing commercial building improvements. The first $30 million issuance of the $400 million Cut Carbon Note offering closed with participation from 70 investors. The first series contributes to financing for twelve building projects that will cumulatively save 82,856 metric tons of carbon, 38.7 million gallons of water, and $21.5 million in energy costs.

“The closing of the first Cut Carbon Note series recognizes the strong demand for direct green investments and the appetite for low-carbon commercial development. Individual and institutional investors in the Cut Carbon Note are pioneers in this unique form of partnership,” said Tricia Baker, SVP of Strategy & Impact at PACE Equity.