Aerospace component manufacturer China Development Bank (CDB) Aviation, on Thursday, said it is entering in a sustainability linked loan (SLL), which is secured through $625 million syndicated term loan facility.
The facility secured, a week ago, was financed by a group of mandated lead arranger (MLA) banks, which includes Crédit Agricole Corporate and Investment Bank, BNP Paribas, Hongkong and Shanghai Banking, Natixis Corporate & Investment Banking, China Minsheng Banking’s Hong Kong banch, China Guangfa Bank’s Shenzhen branch, and London branch of China Construction Bank.
The firm said SLL parameters depend on satisfaction of sustainability performance targets (SPT). SLL is a type of loan that is linked to the borrower’s performance on certain environmental, social, and governance (ESG) criteria.
The SLL conditions are based on CDB Aviation performance in meeting specific goals, including reducing the carbon footprint of its aircraft fleet, said the company.
Moody’s Investors, financial service provider will act as second party opinion for the parameters and SPTs, said the firm. Also, Crédit Agricole Corporate, banking firm will operate as sustainability agent, while Natixis Corporate & Investment Banking will serve as sustainability structuring bank, added the Dublin-based company.
“We’re thrilled to have leveraged our comprehensive sustainability strategy, with a particular focus on the activities across the environmental and social aspects of our operations, to secure this first major sustainability-linked loan syndicated facility among aircraft lessors,” said Jie Chen, executive chief of the firm.
CDB Aviation is a wholly-owned Irish subsidiary of China Development Bank Financial Leasing, specializing in all aspects of aviation industry link, aircraft leasing, aircraft fleet management, aviation finance.
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