Air France-KLM and Societe Generale announce the financing of an Air France Airbus A350-900 aircraft

Air France-KLM and Societe Generale announce the financing of an Air France Airbus A350-900 aircraft under a Balthazar-backed Sustainability-Linked Senior Secured Loan.

On December 3rd 2021, Air France took delivery of its twelfth Airbus A350-900, a latest-generation aircraft offering outstanding environmental performances.

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.

Air France-KLM’s ambitious environmental framework and targets have been recognized by the recent ESG Evaluation performed by S&P, rating Air France-KLM as leader within the airline industry, and supporting the Group’s overall strategy.

About Air France-KLM

A global player with a strong European base, the Air France-KLM Group’s main areas of business are passenger transport, cargo transport and aeronautical maintenance.

Air France-KLM is a leading airline Group in terms of international traffic on departure from Europe. It offers its customers access to a worldwide network, covering over 300 destinations thanks to Air France, KLM Royal Dutch Airlines and Transavia, mainly from its hubs at Paris-Charles de Gaulle and Amsterdam-Schiphol.

Its Flying Blue frequent flyer programme is one of the leaders in Europe with over 17 million members.

Together with its partners Delta Air Lines and Virgin Atlantic, Air France-KLM operates the largest transatlantic joint venture, with more than 340 daily flights.

Air France-KLM is also a member of the SkyTeam, the alliance dedicated to providing passengers with a more seamless travel experience at every step of their journey 19 member airlines working together across an extensive global network.

Recognized for 17 years as an industry leader in sustainable development through its leading position in the DJSI index, the Air France-KLM Group is determined to accelerate the transition to more sustainable aviation. Since 2003, the Air France-KLM Group has been a member of the United Nations Global Compact. The aim is to make a significant contribution to the UN Sustainable Development Goals in connection with the Group’s activities.

About Societe Generale

Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth. Committed to the positive transformations of the world’s societies and economies, Societe Generale and its teams seek to build, day after day, together with its clients, a better and sustainable future through responsible and innovative financial solutions.

Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 133,000 members of staff in 61 countries and supports on a daily basis 30 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses:

• French Retail Banking which encompasses the Societe Generale, Credit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation;
• International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets;
• Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.

Societe Generale is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

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