AF-KLM closes landmark sustainability-linked bond issuance

Air France-KLM has announced the successful issuance of its inaugural sustainability-linked bonds, for a total aggregate amount of €1.0bn The offering is composed of two tranches: a €500 million with a 3.3-year maturity and a coupon of 7.250%; and a €500 million with a 5.3-year maturity and a coupon of 8.125%. The bonds are linked to Air France-KLM’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. The offer is reported to