BNP Paribas arranged and financed two new A220-300 under sustainability-linked loan (SLL) JOLCO, operated by Air France, the bank said in a statement. The bank said it the SLL is the first of its kind with it being the first SLL arranged by BNP Paribas for the Air France-KLM Group, as well as the first SLL financing for the latter's A220 aircraft.
The SLL JOLCO financings for both aircraft were closed in July and September, respectively, in line with its original schedule.
For both aircraft, BNP Paribas structured the transaction with a 10.5 year fully amortizing sustainability-linked term loan fully undertaken by BNP Paribas, combined with an equity tranche.
The financing's sustainability targets focus on the sustainability strategy of Air France and addressing the decarbonisation of its operations. The new aircraft and its fuel efficiency plays a role in the airline's emissions reduction targets.
BNP Paribas acted as sole bookrunner, lease arranger, sustainability coordinator, lender, facility agent, security agent, and account bank for the airline.