Air France-KLM, Air France & KLM Get €2.2b ESG Credit

Air France-KLM, Air France, and KLM have signed two revolving credit facilities (RCF) linked to environmental, social, and governance (ESG) key performance indicators (KPIs) with a consortium of international financial institutions, totalling €2.2 billion.

The financing cost for these facilities is tied to the achievement of the ESG KPIs, which align with Air France-KLM and the two airlines' commitment to sustainable development and reducing carbon emissions. The RCFs include a mechanism for margin adjustment based on the independent attainment of these dedicated indicators, such as reducing unit CO2 emissions and increasing the share of sustainable aviation fuel.

Air France-KLM and Air France have jointly signed a €1.2 billion Sustainability-Linked RCF, with an initial maturity in 2026 and options for two one-year extensions. The facility also includes a €100 million accordion increase option at the discretion of the lenders, exercisable within one year from the signing date.

The RCF was coordinated by Crédit Agricole Corporate and Investment Bank (CACIB) and Natixis, serving as Global Coordinators, ESG Coordinators, and Documentation Agents, and involved a syndicate of 15 international banks.

KLM has signed a €1.0 billion RCF that incorporates ESG KPIs. The facility has an initial maturity in 2027, with options for two one-year extensions, and includes a €200 million accordion increase option at the discretion of the lenders. The RCF was coordinated by ABN AMRO, ING, and Rabobank, with Crédit Agricole Corporate and Investment Bank (CACIB) acting as coordinator for the ESG targets. It was concluded with a syndicate of 14 international banks.

This RCF replaces both the direct loan previously granted to KLM by the Dutch State and the credit facility guaranteed by the Dutch State, both of which have been cancelled by KLM, resulting in the conditions attached to this aid no longer applying.

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Source: Air France-KLM