Cebu Pacific has finalized a sustainability-linked Japanese Operating Lease with Call Option (JOLCO) to finance its newest Airbus A321neo. This marks the airline’s first-ever sustainability-focused aircraft financing. The Cebu Pacific sustainability-linked loan was accomplished with Crédit Agricole CIB, recognized as a leader in sustainable finance, served as the exclusive Sustainability Advisor, JOLCO Arranger, and Mandated Lead Arranger for the deal.
Delivered to Cebu Pacific on December 23, 2024, the advanced A321neo will help reduce the airline’s carbon emissions. This milestone aligns with Cebu Pacific’s commitment to transition to a fully NEO fleet by 2028 as part of its broader decarbonization strategy through the Cebu Pacific sustainability-linked loan.
The A321neo, equipped with cutting-edge fuel-efficient technology, supports Cebu Pacific’s goals of reducing the carbon intensity of its operations. Through the Cebu Pacific sustainability-linked loan structure developed by Crédit Agricole CIB, the airline has set measurable emissions reduction targets. Meeting these goals will unlock financial benefits for the company, reinforcing the practical value of sustainable investments.
Insights from Cebu Pacific and Crédit Agricole CIB
Cebu Pacific’s Chief Financial Officer, Mark Cezar, emphasized the importance of this financing in achieving the airline’s environmental goals. “Cebu Pacific’s first sustainability-linked aircraft financing is a milestone in our decarbonization journey, as the transaction supports the core element of our program – the modernization of our fleet towards more advanced and fuel-efficient aircraft. With this deal, we want to emphasize that access to financing for sustainability initiatives is available and that Cebu Pacific is taking full advantage of such opportunities in our pursuit of being the decarbonization leader in the region,” he said.
Bertrand Rovetto, Crédit Agricole CIB’s Head of Aviation Group Asia-Pacific, expressed pride in collaborating with Cebu Pacific on this pioneering effort. “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,” Rovetto stated.
The addition of the Airbus A321neo and the adoption of sustainability-linked financing mark a significant step forward for Cebu Pacific’s modernization efforts. By linking its financing strategy with environmental objectives, Cebu Pacific demonstrates that innovation in sustainability can create financial opportunities while advancing climate goals.
