Fueling Virgin Australia in Asia Pacific's landmark general syndication of sustainability-linked aircraft financing

While full delivery is expected by September, four aircraft capable of delivering a 20% reduction in fuel consumption and CO2 emissions versus the previous models have already been delivered under the facility. Terms are linked to Virgin Australia’s predefined Sustainability Performance Targets (SPTs) around carbon emissions reduction, with the SPTs benchmarked against Transition Pathway Initiative below 2-degree pathway, supporting the credibility of the sustainability-linked loan structure.

Drawing on a longstanding partnership with Virgin Australia, Crédit Agricole CIB acted as Mandated Lead Arranger, Underwriter, Bookrunner and Sustainability Coordinator, as well as sole Agent and Security Trustee.

This financing represents an innovative transaction both in the Pacific region and in the wider aviation sector, being among the first general syndications of a sustainability-linked aircraft financing in Asia Pacific.

It also marks a significant milestone for Virgin Australia, securing competitive long-term debt financing while linking the facility’s terms to defined carbon emissions reduction targets. In 2021, Virgin Australia committed to targeting net zero emissions by 2050. Since then, the company has continued to build out its sustainability strategy, including modernising its fleet, identifying and implementing operational efficiencies, reducing ground emissions, improving waste management, and exploring commercially viable alternative fuels.