Crédit Agricole Corporate and Investment Bank (CIB) closed a $300 million engine financing arrangement, which includes a sustainability-linked feature, with LATAM Airlines Group.
This facility is the latest iteration of various spare engine financings that LATAM has had with Crédit Agricole CIB over the last decade and is initially secured by spare engines that power LATAM’s core narrowbody and widebody aircraft fleet. Crédit Agricole CIB acted as co-lead arranger, joint bookrunner, joint structuring agent and sustainability structuring coordinator, and also serves as facility agent and security agent. The transaction was closed in concert with BNP Paribas.
“LATAM has been an important client for over 30 years,” Elisa Lajonchere, managing director, transportation group at Crédit Agricole CIB, said. “This company is the aviation leader in South America, initiating large-scale consolidation to maximize the service offering to all key cities in South America and beyond. LATAM was the first in the Americas to order and fly the Boeing B787 new technology aircraft in 2012. We are proud to be a leading partner to LATAM and bring this Revolving Credit Facility to the broader market.”
“We are pleased to have served as one of LATAM’s sustainability structuring coordinators for the company’s inaugural sustainability-linked financing,” Romina Reversi, head of sustainable investment banking for the Americas at Crédit Agricole CIB, said. “The milestone not only reinforces LATAM’s dedication to reducing emissions, but also advances sustainable finance within the Americas aviation sector. We hope this achievement will inspire other borrowers and issuers across the region to embrace similar strong sustainability-linked financing commitments.”
