Cebu Pacific, the Philippines’ leading airline, closed a sustainability-linked Japanese Operating Lease with Call Option (JOLCO) for one new A321NEO (New Engine Option), which marks its first-ever sustainable aircraft financing. Crédit Agricole CIB acted as the sole Sustainability Advisor, JOLCO Arranger and Mandated Lead Arranger. 

Crédit Agricole CIB’s leading expertise on both aviation and sustainable finance positioned the Bank favorably to be the partner of choice for Cebu Pacific’s first sustainability-linked loan (SLL). The Bank was notably awarded Most Sustainable Aviation Bank in 2023 & 2024 and APAC Bank of the Year of 2024 by Airline Economics.

Under the SLL structure designed by Crédit Agricole CIB, Cebu Pacific has set targets aiming at reducing the carbon emission intensity of its aircraft fleet notably through its modernisation towards more advanced and fuel-efficient aircraft, which, if met, will provide financial incentives to the airline. Delivered to the airline on 23 December 2024, the brand new Airbus A321NEO, with improved fuel-efficiency compared to previous generations, will contribute to Cebu Pacific’s carbon emission intensity reduction objectives as the airline progresses towards transitioning to an all-NEO fleet by 2028.

“Cebu Pacific’s first sustainability-linked aircraft financing is a milestone in our decarbonisation journey, as the transaction supports the core element of our programme – the modernisation of our fleet towards more advanced and fuel-efficient aircraft. With this deal, we want to emphasize that access to financing for sustainability initiatives is available and that Cebu Pacific is taking full advantage of such opportunities in our pursuit of being the decarbonisation leader in the region.” – Mark Cezar, CEB Chief Financial Officer

“We are delighted to have been selected by Cebu Pacific to structure their first sustainability-linked aircraft financing. Crédit Agricole CIB is a pioneer in sustainable finance and as we are committed to supporting our clients in their decarbonisation efforts, we have built-in a financial incentive mechanism rewarding the airline’s progress towards their net zero ambition. We hope this is the first of many more sustainability-linked centered collaborations with Cebu Pacific.” – Bertrand Rovetto, Crédit Agricole CIB Head of Aviation Group Asia-Pacific

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