Cathay Pacific Airways closes the First Sustainability-linked JOLCO in Asia-Pacific
The financing to Cathay Pacific Airways (Cathay Pacific) of a brand new Airbus A321NEO, a new-generation, highly fuel-efficient aircraft, is structured as a sustainability-linked Japanese Operating Lease with Call Option (JOLCO).
The terms of the financing are linked to Cathay Pacific achieving certain targets in respect of predefined sustainability-linked indicators. In this transaction, performance targets focus on the proportion of new generation aircraft in Cathay Pacific’s group fleet and the gradual increase of Sustainable Aviation Fuel (SAF) use in the carrier’s fuel consumption.
“Crédit Agricole CIB is delighted to have structured and provided this innovative and competitive financing of a new technology Airbus aircraft for its longstanding client Cathay Pacific Airways, leveraging the Bank’s dual strengths of JOLCO arrangement and Sustainable Financing, to accompany Cathay Pacific Airways on its strategic journey towards an environmentally sustainable future. It also demonstrates Crédit Agricole CIB’s on-going commitment to the Aviation sector and the Asia-Pacific region.”
Laurent Delvart, Head of Asian Aviation Group