Cebu Pacific, the Philippines’ leading airline, has made history by becoming the first low-cost carrier in Southeast Asia to secure a Sustainability-Linked Loan (SLL). This landmark deal highlights CEB’s commitment to decarbonizing its operations and reinforces its leadership in sustainable air travel within the region.
The loan, arranged by Crédit Agricole CIB and structured under a Japanese Operating Lease with Call Option (JOLCO), ties financial incentives to the airline’s ability to meet key environmental performance targets. Specifically, Cebu Pacific has committed to reducing the carbon emission intensity of its aircraft fleet, aligning its financial strategy with its 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,” said Mark Cezar, CEB Chief Financial Officer. “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.”
The loan facilitated the procurement of a brand-new Airbus A321neo, which was delivered to Cebu Pacific on December 23, 2024. The New Engine Option (NEO) aircraft’s advanced fuel efficiency will support the airline’s efforts to achieve its goal of operating an all-NEO fleet by 2028, significantly cutting carbon emissions across its network.
Crédit Agricole CIB, the corporate and investment banking arm of the Crédit Agricole Group, served as the sole sustainability advisor, JOLCO arranger, and mandated lead arranger for the transaction.
“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 decarbonization 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,” said Bertrand Rovetto, Crédit Agricole CIB Head of Aviation Group Asia-Pacific.
Securing the SLL is a pivotal step in Cebu Pacific's efforts to embed sustainability into its financial and operational strategies. This initiative reinforces the airline’s commitment to leading the domestic aviation sector while guiding the industry toward greener practices and more sustainable air travel.
For more information on Cebu Pacific, visit cebupacificair.com
