ISTAT Jetrader - Winter 2022 - 31

SELECT LIST OF LMA FINANCINGS
Principles
Green Loan Principles
( " GLP " )
Examples
Dec 2019: Avation received a second party opinion from Vigeo Eiris stating that replacing older
jets with (three) brand new ATR72-600s " is aligned with the LMA Green Loan Principles 2018 "
Loan Market
Association ( " LMA " )
Sustainability-Linked
Loan Principles
( " SLLP " )
Jul 2022: Cathay Pacific JOLCO on 1x A321neo
Jun 2022: Volaris SL PDP financing
May 2022: Air France SL Jolco - Asset Brok-Air
May 2022: Air France SL Jolco - CA-CIB
Apr 2022: Iberia issued USD461m SL EETC
Jan 2022: Air France financing A350-900; must attain certain sustainability performance
targets: (i) percentage of new aircraft, (ii) SAF
Oct 2021: Etihad issued USD1.2b loan on carbon reductions and female participation
May 2021: Aeroflot USD320m loan from Sovcombank
Feb 2020: jetBlue amended its USD550m revolving credit facility (RCF) in which margin steps
up/down ( " positive incentive loan " )
May 2019: Sydney airport's AUD1.4b 'positive incentive " RCF
Source: LMA, ICMA, Company press releases
SELECT LIST OF ICMA FINANCINGS
Principles
Examples
Green Bond Principles
International Capital
Market Association
( " ICMA')
March 2022: Japan Airlines - transition bond in alignment with Green Bond Principles.
Conform to METI Climate Transition Finance. Proceeds: upgrading to fuel efficient aircraft.
CO2 emission target of less that 9.09 million tons by 2025, adopting SAF and improving
operations - Transition Bond
Dec 2020: Swedavia issued SEK1b (USD105m) green bond with a second party opinion ( " light
green " ) from Cicero* of a below 2°C target and zero emissions from own operations, 5% SAF by
2025 and fossil-free by 2045
Sept 2018: ANA issued a JPY10b green bond to finance a new training centre in Tokyo (also
used R&I and MOEJ)
Social Bond Principles
n/a
Sustainability-linked
Bond Guidelines
Jul 2021: British Airways issued USD553m in EETCs; Interest rate will increase by 25bp if CO2/
passenger kilometre does not reduce by 8.1% versus 2019 levels
May 2021: ANA issued JPY10b (~USD92m) 5yr bond. 4 SPTs: DJSI World and Asia Pacific,
FTSE4Good, MSCI ESG andf A- or higher on CDP
Oct 2020: Etihad issued USD600m sukuk; SPT of 17.8% reduction in emissions in pax fleet
Dec 2019: Etihad issued a USD100m green loan to finance expansion of a sustainable apartment
complex for cabin crew
Note: Grayed transactions are not aircraft-specific financings
Source: Company press releases, press articles
* Determine which, if any, carbon offsets are
acceptable, albeit with few available options here.
* While aviation is ~2.4% of all CO2 emissions today,
ICAO believes this could increase by a factor of two to
four times by 2050 - if no decarbonization - due to
other sectors decarbonizing more quickly and to more
air passenger traffic. This latter figure is the one many
are focused on; aviation should be cognizant.
#aviationisaforceforgood
Michael Halaby has 25+ years of providing strategic funding advice to
C-suite executives. Halaby is head of Aviation Advisory at MUFG Bank
Ltd. He is an active speaker and writer on ESG in aviation. He is a fellow
of the Royal Aeronautical Society.
* WIN TER 2022 * 31
ISTAT Jetrader - Winter 2022

Table of Contents for the Digital Edition of ISTAT Jetrader - Winter 2022
