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Climate Change SPAC to list on NYSE
Posted on Friday, 11 September 2020 11:37
Pimco and industry veterans have established Climate Change Crisis Real Impact I Acquisition to invest in the carbon avoidance and removal sector.
The newly-formed Delaware blank check has hired Citigroup, BofA Securities and Barclays for its initial public offering (IPO) worth USD 200.00 million on the New York Stock Exchange (NYSE).
It is selling 20.00 million units at USD 10.00 each and has provided the joint bookrunning managers with a USD 30.00 million overallotment option.
Climate Change Crisis’s sponsor is buying 6.00 million warrants at USD 11.50 apiece in a concurrent private placement, and Pimco has expressed an intent to purchase up to 1.98 million securities in the IPO.
In the prospectus, the blank check noted society is shifting towards a dramatically more decarbonised and progressively efficient energy ecosystem in order to reduce its impact on the environment.
Data from the Global Carbon Project, cited in the filing, estimates worldwide carbon emissions at 40.00 billion tonnes per year.
Concurrently, the International Monetary Fund has forecast the cost of avoiding these emanations at roughly USD 50.00 per tonne.
Avoiding additional carbon dioxide emissions, through substitution and replacement represents an economic opportunity of USD 2,000 billion per year.
Given its global scale and importance, Climate Change Crisis believes decarbonising the climate offers one of this generation’s greatest economic imperatives.
“Achieving real climate impact requires private sector action at scale across all sectors of the economy.
“Over 1,300 companies globally, with a combined market cap of approximately USD 25,00 billion, as of July 2020, have already announced long-term commitments and bold actions to accelerate the net-zero carbon goal across their business operations and, in many cases, across their third-party supply chain”.
Zephyr, the M&A database published by Bureau van Dijk, shows 127 IPOs by cash shells have been announced in 2020 to date.
The largest of the year is also the biggest ever listing by a SPAC, as Pershing Square Tontine Holdings raised USD 4.00 billion in July.
© Zephus Ltd