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4-Dec-2024 12:10 AM

LATAM Airlines Group signs USD300m sustainability linked loan with Credit Agricole and BNP Paribas

LATAM Airlines Group signed (03-Dec-2024) a USD300 million sustainability linked loan with Credit Agricole Corporate & Investment Banking and BNP Paribas. The loan involves a revolving credit line that allows LATAM to access additional long term financing under special conditions in its interest rates if a series of sustainability goals are met. The transaction includes sustainability linked provisions where LATAM may receive pricing adjustments based on its performance against carbon emission intensity of operations, measured as tons of CO2 emissions per revenue ton kilometre. LATAM stated the loan is the first of its kind in South America. [more - original PR - Latam Airlines Group] [more - original PR - Credit Agricole]

Background ✨

LATAM Airlines Group has been focusing on improving its financial structure, evidenced by its recent placement of USD1.4 billion in bonds to reduce debt costs1. The airline has also secured substantial liquidity, with approximately USD3.6 billion available2. Additionally, LATAM has been proactive in sustainability initiatives, such as partnering with Future Carbon to offset 400,000 tonnes of CO23 and launching passenger carbon offsetting schemes4.

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