K&L Gates Advised Crédit Agricole CIB On Southeast Asia’s First Sustainability-Linked Loan
Global law firm K&L Gates has advised leading international bank Crédit Agricole CIB on structuring Southeast Asia’s first-ever sustainability-linked loan (SLL) for a low-cost carrier. The loan supports Cebu Pacific, a Philippines-based airline, in financing a new Airbus A321neo aircraft under a Japanese operating lease with call option (JOLCO). The aircraft was delivered in December 2024.
The SLL framework, developed by Crédit Agricole CIB, integrates carbon emissions intensity reduction targets, incentivizing Cebu Pacific with financial rewards upon meeting sustainability milestones. The airline is transitioning to an all-neo fleet by 2028, aligning with its broader carbon reduction objectives. The Airbus A321neo’s fuel efficiency is expected to play a key role in reducing the airline’s environmental footprint.
Crédit Agricole CIB’s Head of Aviation Group Asia-Pacific, Bertrand Rovetto, commented: “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.”
The transaction at K&L Gates was led by Singapore Finance Partner Duc Nguyen, with support from Dat Le.
Duc Nguyen stated: “We congratulate our client CACIB for concluding this milestone transaction through devising innovative financing mechanisms that reward sustainable business practices. Sustainability-linked financial products are emerging as a transformative trend in the aviation sector, and we are delighted to be part of this significant step forward.”