• Strong show of confidence from international financial institutions in support of Air France-KLM and its airlines’ financial ESG trajectory
• ESG-linked RCFs to align Groups’ financial tools to decarbonization trajectory
• KLM cancelled both the remaining direct loan and the existing credit facility guaranteed by the Dutch State.

Following the intention expressed during the presentation of the Group’s Full Year 2022 results on February 17, 2023, Air France-KLM, Air France and KLM have signed two ESG KPI-Linked Revolving Credit Facilities with a large pool of international financial institutions, for a total amount of €2.2 billion.

See related article: Air France-KLM to Present Sustainability-Linked Financing Framework to Investors

For each facility, a set of ESG linked Key Performance Indicators are embedded in the financing cost. These indicators are in line with Air France-KLM and the two airlines’ commitment to sustainable development and a gradual decarbonization of activities. The two RCFs include a financing cost margin adjustment mechanism (upward or downward) conditional to the independent achievement of these dedicated Indicators (reduction of the unit CO2 emission, increase of the share of Sustainable Aviation Fuel, among others).

This set of agreements is the second successful sustainability-linked transaction undertaken by Air France-KLM combined with Air France and KLM after its inaugural Sustainability-Linked Bond issued in January 2023.