ImpactAlpha, Feb. 26 – BNP Paribas closed a sustainability-linked loan with JetBlue Airways, one of first such loans in the aviation industry.
The margin JetBlue pays on its loan from the French bank will fluctuate with the airline’s environmental, social and governance score. JetBlue earlier this year announced it would operate carbon neutral on all domestic flights. The sustainability-linked loan amends an existing $550 million revolving credit facility.
“Our owners, many of whom are also crewmembers, want to see how ESG initiatives are connected to our financials,” said JetBlue’s Sophia Mendelsohn. Performance will be rated by ESG-research firm Vigeo Eiris.
Sustainable finance landscape. The “sustainable debt” market is likely to surpass $400 billion this year, according to S&P Global Ratings.
European banks lead all green-labeled issuances. BNP Paribas closed a sustainability-linked syndicated credit facility earlier this month with professional services firm WSP Global. Last month, the bank closed an incentive-linked corporate revolving credit facility with Canada’s Brookfield Renewable Partners.