Cebu Pacific’s new loan to fund green initiatives, fleet growth

Cebu Pacific, operated by Cebu Air, Inc., has secured a sustainability-linked loan to help fund its decarbonization efforts and fleet expansion plans. “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,” Cebu Pacific CFO Mark Julius V. Cezar said in a media release on Wednesday. The airline said the terms and amount of the loan remain confidential. “The financing has been structured to align with Cebu Pacific’s strategic goals and fleet expansion plans,” it noted. The airline said the sustainability-linked loan is the first of its kind in Southeast Asia for low-cost carriers. “This landmark deal highlights CEB’s commitment to decarbonizing its operations and reinforces its leadership in sustainable air travel within the region,” it added. It said the loan was arranged by Crédit Agricole CIB and was structured under a Japanese Operating Lease with Call Option. Sustainability-linked loans are corporate loans aimed at facilitating environmentally and socially sustainable initiatives.<br/>