The government-owned green bank and Commonwealth Bank have bought into the world’s liquidity hub for ESG-inclusive commodities, Xpansiv.
Following a successful capital raise, Xpansiv now boasts several new investors, including Australia’s own Commonwealth Bank and the government-owned Clean Energy Finance Corporation.
“We are extremely pleased with the oversubscribed outcome,” said Xpansiv executive chairman Will Stewart.
“It is our pleasure to welcome high-quality investors, including Clean Energy Finance Corporation, Commonwealth Bank of Australia, Hartree Partners, Wilson Asset Management, and many others who have participated along with Xpansiv’s current investors.”
Xpansiv will use the US$100 million to facilitate the expansion of its platform to develop, register, transact, and price ESG commodities through organic growth initiatives and strategic acquisitions.
“Our capital raise comes at a critical moment,” said Xpansiv CFO Suzy Taherian.
“Commodity markets must adapt to meet global ESG ambitions, beginning with net-zero commitments. Xpansiv is at the forefront of this wave and well funded to consolidate our position as the core infrastructure provider for ESG commodity markets.”
Commenting on its participation in the raise, Commonwealth Bank’s group executive for institutional banking and markets said the bank’s decision to invest was helping it meet its goal to prepare clients for the future.
“Voluntary carbon markets will play a critical role in the economies of tomorrow, and we are speaking to stakeholders right across the value chain so we can help our clients along this path,” said Andrew Hinchliff.
“Xpansiv has built a leading marketplace for ESG commodities, and we are pleased to be able to invest in the next phase of its growth.”
Xpansiv recently passed a major milestone with 70 million tonnes of carbon traded on its platform in 2021 year-to-date.