Uncertainty surrounding sustainability linked loans remains strong

Speaking at Airline Economics’ Sustainable Aviation Fuel and carbon financing conference day in Dublin, Mark Allen, head of corporate finance at SMBC Aviation Capital, explained that many of the company’s lenders are already moving portfolios towards supporting net zero emissions. “Over the last couple of years, we’ve been working hard to create a sustainable financing framework,” he explained, adding that the first transaction was conducted in September 2023. “We’re very focused on the integrity of our new facilities. And we’re acutely aware of the reputational damage of greenwashing allegations,” he added, with the appointment of global ESG rating company Sustainalytics