KLM

2023 - 1 - 9

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Image courtesy of "GlobalCapital"

Air France-KLM's unrated SLBs fly to €1bn (GlobalCapital)

Air France-KLM, the unrated airline, launched on Monday its first sustainability-linked bonds, which are linked to reductions in its carbon emissions ...

To unlock this article: Unlock this article. Air France-KLM’s unrated SLBs fly to €1bn

Air France-KLM announces the successful issuance of its inaugural ... (GlobeNewswire)

Paris, 9 January 2023 Air France-KLM announces the successful issuance of its inaugural sustainability-linked bonds, for a total aggregate amount of...

The Air France-KLM Group and its airlines are fully committed to reducing their environmental footprint as part of a transparent and responsible approach to sustainability, with the objective to diminish its well-to-wake scope 1 and 3 jet fuel greenhouse gas protocol emissions by 30% per revenue tonne kilometre (RTK) by 2030 compared to 2019. This inaugural transaction links the Company’s financial strategy with its environmental objectives and represents an additional milestone in Air France-KLM’s ambition to achieve its decarbonization targets, as a leader for a more sustainable aviation industry. The proceeds will be used to pursue further partial redemption of the outstanding bank loan guaranteed by the French State (“PGE”’, issued in May 2020 during the Covid-19 crisis). - The offer attracted strong investor interest, with an orderbook around €2.6bn, covering c. Air France-KLM (the “Company”) has successfully placed its first sustainability-linked bonds today, for a nominal amount of €1.0bn, linked to the Company’s target to reduce its well-to-wake scope 1 and 3 jet fuel greenhouse gas (GHG) emissions per revenue tonne kilometer (RTK) by 10% by 2025, compared to a 2019 baseline, as part of its 2030 SBTi approved objective. - Bonds’ coupons will be indexed on Air France-KLM Group’s target to reduce its well-to-wake scope 1 and 3 jet fuel greenhouse gas (GHG) emissions by 10% per revenue tonne kilometer (RTK) by 2025 compared to 2019, as part of its wider decarbonization roadmap.

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Air France-KLM tests European high-yield debt appetite after ... (Malay Mail)

LONDON, Jan 10 — Air France SA-KLM launched a debut sustainability-linked bond worth €1 billion (RM4.7 billion) yesterday, giving the European credit market ...

Keaveny added there has also been price tightening in the secondary market, which could generate a more stable flow of HY issuances and grow the primary pipeline. They expect the rebound will be relatively gradual and total some €30 billion for the full year, well below the recent yearly averages. The French airline launched the sale of an expected three-year €500 million bond and a five-year €500 million bond after holding investor meetings last week. The bonds are unrated, but are classified as high yield given their expected coupon. But, they said they “choose to view the glass for 2023 as half full for the European high yield market rather than half empty after a difficult previous year.” In comparison, the ICE BofA HY index was quoted at close on Friday at a price of 310 basis points (bps) for a yield of 7.1 per cent, according to Refinitiv data.

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Air France-KLM tests European high-yield debt appetite with ... (Nasdaq)

Air France SA-KLM sold a debut sustainability-linked bond worth one billion euros ($1.07 billion) on Monday, giving the European credit market its first ...

Keaveny added there has also been price tightening in the secondary market, which could generate a more stable flow of high yield issuances and grow the primary pipeline. In comparison, the ICE BofA HY index was quoted at close on Friday at a price of 310 basis points (bps) for a yield of 7.1%, according to Refinitiv data. They expect the rebound will be relatively gradual and total some 30 billion euros for the full year, well below the recent yearly averages. The Air France-KLM debut bonds form part of the firm’s Sustainability-Linked Bond (SLB) framework, the first one from the aviation sector. If the firm fails to meet them, the interest that it pays on the bond increases. It set the coupon for the three-year at 7.25% and the five-year at 8.125%, yielding 7.375% and 8.25%.

Air France-KLM: Successful Issuance Of Inaugural Sustainability ... (Kalkine Media)

BRIEF-Air France-KLM: Successful Issuance Of Inaugural Sustainability-Linked Bonds For €1 Bln.

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