Pegasus Airlines to receive first ever sustainability-linked aircraft-secured term loan

Pegasus Airlines has closed the first ever sustainability-linked aircraft-secured term loan (“SSL”) for the financing of ten new Airbus A321neo aircraft. The transaction was guaranteed by UK Export Finance and led by Societe Generale, acting as global arranger, sustainability structurer, facility agent and security trustee.

The transaction is the first-ever aircraft export credit facility incorporating sustainability-linked features. It is also the largest aircraft-secured sustainability linked term loan in the market to date, as well as the first to be verified by a Second Party Opinion provided by an independent ESG ratings and analytics agency.

Pegasus Airlines aims to reduce carbon emissions by 2030 while increasing the representation of women in management level positions.

Barbaros Kubatoğlu, Deputy Chief Financial Officer, Pegasus Airlines, said: “With this loan, we reaffirm our commitment to our long-term goals on carbon emissions and gender equality.

“It was particularly important for us to address both environmental and social initiatives with this loan, which is the first of its kind,” said Kubatoğlu.

Yann Sonnallier, Global Head of Aviation Finance, Societe Generale, said Societe Generale is proud to be in partnership with Pegasus Airlines and UK Export Finance for the SSL: “We are pleased to have supported Pegasus Airlines with its ambitious environmental and social development strategy, thereby contributing to the decarbonisation and sustainable growth of the industry.”