The first sustainability-linked aircraft loan to finance ten new Airbus A321neo aircraft has been secured by Pegasus Airlines.
The deal agreed by the Turkish budget carrier was guaranteed by UK Export Finance.
The transaction was led by French banking giant Societe Generale with the terms based on sustainability-linked key performance indicators (KPIs) – carbon intensity of flights and gender diversity in management positions.
The carrier has previously pledged to reach net zero emissions by 2050 and aims to achieve its environmental targets through fleet optimisation, efficiency in operations and the use of sustainable aviation fuel.
The airline pledged to “leverage on and further strengthen” long- standing commitments in promoting gender balance to reach its gender diversity objectives.
Deputy chief financial officer Barbaros Kubatoglu confirmed that the carrier had set ambitious targets to reduce carbon emissions by 2030 while increasing the representation of women in management level positions.
“We are happy to have closed this landmark deal with Societe Generale. We are also pleased to include the sustainability link in an Ex-Im backed loan with the approval of UK Export Finance.
“With this loan, we reaffirm our commitment to our long-term goals on carbon emissions and gender equality.”
He added: “It was particularly important for us to address both environmental and social initiatives with this loan, which is the first of its kind. We are proud to have pioneered this ground-breaking deal, while honouring our sustainability and social commitments.”
Yann Sonnallier, global head of aviation finance at Societe Generale, said:“Societe Generale is proud to be Pegasus Airlines’ and UK Export Finance’s partner on this landmark transaction.
“We are pleased to have supported Pegasus Airlines with its ambitious environmental and social development strategy, thereby contributing to the decarbonisation and sustainable growth of the industry.”