CDB Aviation has closed a new $506 million unsecured term loan facility transaction late last month with sustainability-linked (SLL) features.

The new facility is the second SLL-type transaction for the lessor, following the issuance of its inaugural $625 million sustainability-linked syndicated term loan in December last year.

Similar to its inaugural facility, the new loan parameters are contingent on the satisfaction of sustainability performance targets based on the lessor’s three KPIs.

These include reducing the carbon intensity of the CDB Aviation’s fleet as it focuses on fuel-efficient aircraft, increasing the share of new generation aircraft in the lessor’s fleet, pursuing its target to reach 60% of new generation aircraft (by number of aircraft) by the end of 2025, and increasing the level of diversity, equity, and inclusion (DEI)-related training for the workforce.

The facility was financed by a group of mandated lead arranger banks, including Bank of China (Hong Kong) Limited, China CITIC Bank International, Bank of Communications, Sydney Branch, Bank of Communications, Tokyo Branch, Bank of Communications (Hong Kong) Limited, Agricultural Bank of China Limited London Branch, The Bank of East Asia, Industrial and Commercial Bank of China Limited London Branch, Shanghai Pudong Development Bank, Hong Kong Branch, Shanghai Pudong Development Bank, London Branch, and China Construction Bank Corporation London Branch.

Bank of China Hong Kong acted as facility agent and Credit Agricole as sole sustainability agent.