Pegasus Airlines closes the first ever sustainability-linked aircraft-secured term loan

PEGASUS Airlines has closed the first ever sustainability-linked aircraft-secured term loan, which was guaranteed by UK Export Finance for the financing of ten new Airbus A321neo aircraft.

Societe Generale acted as global arranger, sustainability structurer, facility agent and security trustee. The transaction is the first ever aircraft export credit facility incorporating sustainabilitylinked features, as well as the largest aircraft-secured sustainability-linked term loan executed in the market to date and the first one to be verified by a Second Party Opinion provided by an independent ESG ratings and analytics agency.

The terms of the financing are indexed on Pegasus Airlines’ future achievements in respect of two ambitious sustainability-linked Key Performance Indicators (KPIs): carbon intensity of flights and gender diversity in management positions.

Pegasus Airlines, which has pledged to reach net zero emissions by 2050, aims to reach its environmental targets through fleet optimisation, operations efficiency, and sustainable aviation fuels usage.

TO support enterprises in their commitment to minimise their environmental footprint, Lenovo is joining forces with Kuehne+Nagel to create a first-of-its-kind logistics service in the technology industry. Through a purchase add-on, Lenovo customers can now ship IT equipment and devices with Sustainable Aviation Fuel (SAF), a fuel produced from sustainable feedstocks that when used reduces GHG emissions. SAF is currently the most effective measure to significantly reduce the environmental footprint of airfreight. When opting for SAF, Kuehne+Nagel will provide an emission reduction certificate to Lenovo and its customers indicating the amount of SAF litres per purchased device for any trade lane and carrier handling the shipment.

“Kuehne+Nagel continues to develop easy and valueadding sustainable shipping options for its customers. We are pleased that Lenovo chose our innovative SAF concept which offers emission certificates not only to Lenovo but also to its customers and thus supports all stakeholders across their supply chain in achieving their Science-Based Target initiative goals,” Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, stated.

“This innovative approach we have forged with Kuehne+Nagel continues our commitment to delivering sustainable products and solutions. At the same time, we continue to explore, deploy, and champion all opportunities to reduce emissions generated through handling, storage, and transportation of our products,” said Gareth Davies, Head of Global Logistics at Lenovo.

“We are happy to have closed this landmark deal with Societe Generale. We are also pleased to include the sustainability link...With this loan, we reaffirm our commitment to our long-term goals on carbon emissions and gender equality. It was particularly important for us to address both environmental and social initiatives with this loan, which is the first of its kind. We are proud to have pioneered this groundbreaking deal, while honouring our sustainability and social commitments,” Barbaros Kubatoğlu, Deputy Chief Financial Officer of Pegasus Airlines, said.

“Societe Generale is proud to be Pegasus Airlines’ and UK Export Finance’s partner on this landmark transaction. We are pleased to have supported Pegasus Airlines with its ambitious environmental and social development strategy, thereby contributing to the decarbonisation and sustainable growth of the industry,” Yann Sonnallier, Global Head of Aviation Finance at Societe Generale, commented.