Crédit Agricole CIB closes $300MM Sustainability-Linked Spare Engine-Secured Credit Facility for LATAM Airlines Group S.A.

Crédit Agricole Corporate and Investment Bank

Jenna Lee
Head of Communications for the Americas
Email: jenna.lee@ca-cib.com
Tel: +1 212 261 7328

Crédit Agricole Corporate and Investment Bank recently closed a $300MM engine financing arrangement, which includes a sustainability-linked feature, with LATAM Airlines Group S.A.

This facility is the latest iteration of various spare engine financings that LATAM has had with Crédit Agricole CIB over the last decade and is initially secured by spare engines that power LATAM’s core narrowbody and widebody aircraft fleet. Crédit Agricole CIB acted as Co-Lead Arranger, Joint Bookrunner, Joint Structuring Agent and Sustainability Structuring Coordinator, and also serves as Facility Agent and Security Agent. The transaction was closed in concert with BNP Paribas.

LATAM Airlines Group S.A. is a multinational airline holding company, based in Chile, that offers passenger and cargo services in Latin America, the Caribbean, the United States, Europe, and Oceania. LATAM is the largest airline in Latin America and has been a leader in sustainability for aviation, with identified carbon reduction targets included as demonstrated by this transaction. LATAM becomes the first airline in South America to put in place a sustainability-linked financing.

“LATAM has been an important client for over 30 years,” said Elisa Lajonchere, Managing Director, Transportation Group at Crédit Agricole CIB. “This company is the aviation leader in South America, initiating large-scale consolidation to maximize the service offering to all key cities in South America and beyond. LATAM was the first in the Americas to order and fly the Boeing B787 new technology aircraft in 2012. We are proud to be a leading partner to LATAM and bring this Revolving Credit Facility to the broader market.”

“We are pleased to have served as one of LATAM’s sustainability structuring coordinators for the company’s inaugural sustainability-linked financing,” added Romina Reversi, Head of Sustainable Investment Banking for the Americas at Crédit Agricole CIB. “The milestone not only reinforces LATAM’s dedication to reducing emissions, but also advances sustainable finance within the Americas aviation sector. We hope this achievement will inspire other borrowers and issuers across the region to embrace similar strong sustainability-linked financing commitments.”

The closing of LATAM’s facility marks the continuation of an important relationship for Crédit Agricole CIB’s aviation franchise and further solidifies the bank’s status as a market leader in engine financing.

About Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB)

Crédit Agricole CIB is the corporate and investment banking arm of Crédit Agricole Group, the 9th largest banking group worldwide by total assets 2023 (The Banker, July 2024). With over 9,500 employees across Europe, the Americas, Asia-Pacific, the Middle East and Africa, the Bank supports large and mid-cap corporates and institutional clients, helping them meet both local and international financial needs. Crédit Agricole CIB offers a comprehensive range of products and services in capital markets, investment banking, structured finance, commercial banking and international trade. The Bank is committed to supporting its clients in their transition to a low-carbon economy and to aligning its own activities toward net zero. In line with its ambitions, Crédit Agricole CIB is a pioneer and a global leader in sustainable finance (co-founded the Equator Principles, co-authored the Green Bond Principles and Sustainability-Linked Bond Principles).

For more information, please visit www.ca-cib.com.

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