The financing of this Air France aircraft has been arranged and provided by Societe Generale in the form of a sustainability-linked debt facility. The financing transaction is the first sustainability-linked aircraft-secured term loan provided to an airline.
Aircraft financing conditions are linked to the achievement by Air France of Sustainability Performance Targets (SPTs) in respect of sustainability-linked key performance indicators. The SPTs selected for the transaction are focusing on the proportion of new-generation and fuel-efficient aircraft in Air France’s fleet and the future usage of Sustainable Aviation Fuel (SAF) as part of Air France’s daily operations.
The transaction is supported by a Balthazar non-payment insurance policy provided by a consortium of leading private insurance companies through insurance broker Marsh France.
By arranging this landmark aircraft financing transaction, Societe Generale supports Air France’s fleet renewal efforts, which are central to the airline’s sustainability trajectory.
By 2050, Air France and Air France-KLM aim to reach net-zero emissions by using all levers, notably fleet renewal with the introduction of Airbus A220s and A350s at Air France, respectively offering a 20 and 25% reduction in CO2 emissions compared to previous generation aircraft, and the use of Sustainable Aviation Fuels (SAF), which have the potential to reduce CO2 emissions by up to 80% over the entire life cycle.
