Transaction Legal
K&L Gates
Full Credential Description
K&L Gates advised Crédit Agricole CIB in providing Southeast Asia's first-ever sustainability-linked loan (SLL) to Cebu Pacific, a low-cost carrier based in the Philippines. The airline secured a Japanese operating lease with a call option (JOLCO) for a new Airbus A321neo aircraft, delivered in December 2024. The SLL structure includes carbon emissions intensity reduction targets, incentivizing Cebu Pacific to achieve these goals. The airline aims to transition to an all-neo fleet by 2028, which is expected to significantly contribute to its carbon intensity reduction efforts. The Airbus A321neo is designed to be more fuel-efficient than previous models, facilitating Cebu Pacific's progress towards lowering its carbon emissions. Crédit Agricole CIB's Head of Aviation Group Asia-Pacific, Bertrand Rovetto, emphasized the bank's commitment to supporting clients in their decarbonization efforts through innovative financing mechanisms that reward sustainable practices. This transaction marks a significant milestone in the aviation sector, highlighting the emerging trend of sustainability-linked financial products. The deal was led by Singapore Finance partner Duc Nguyen, who noted the importance of this transaction in promoting sustainable business practices within the aviation industry.