Bank of China contributes to a €1.2 billion EUR syndicated sustainability-linked revolving credit facility to Air France-KLM and Air France for unspecified purposes (Linked to Record ID#104908 and #104909)

Project narrative

On April 18, 2023, a syndicate of 15 banks — including the Bank of China (BOC) — signed a €1.2 billion EUR syndicated sustainability-linked revolving credit facility (RCF) agreement with Air France-KLM S.A. — a France-incorporated Franco-Dutch airline holding company with its headquarters in the rue du Cirque, Paris — and Air France S.A. — the flag carrier airline of France and France-incorporated wholly-subsidiary of Air France-KLM S.A. — for unspecified purposes. This RCF carried a maturity period of three years with two-one year extension options, a final maturity date in 2026, an interest rate based on a floating rate plus a margin, and featured a €100 million EUR accordion increase option at the lenders’ discretion during one year following the signing date. As a sustainability-linked RCF, this facility featured Key Performance Indicators (KPIs) based on environmental, social, and governance (ESG) metrics concerning the reduction of unit carbon dioxide emissions, the increase of the share of sustainable aviation fuel, among others; based on the borrowers' performance against the KPIs, there was a financing cost margin adjustment mechanism (ratchet) that would go upward or downward. Record ID#104907 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: Crédit Agricole Corporate and Investment Bank (CACIB), Natixis, BNP Paribas S.A., Citigroup, Banque Fédérative du Crédit Mutuel (BFCM) (CM-CIC), Deutsche Bank, HSBC Bank, Banco Santander, S.A., Caisse des dépôts et consignations (CDC), Société Générale S.A. (SocGen), Crédit Agricole, Natixis (global coordinators, sustainability coordinators), Commerzbank AG, Goldman Sachs Group Inc., JPMorgan Chase Bank, N.A., and Morgan Stanley. CACIB and Natixis served as Global Coordinators, ESG Coordinators, and Documentation Agents. BNP Paribas, Citigroup, CM-CIC, Deutsche Bank, HSBC, Santander, and SocGen served as bookrunners. BOC, CDC, Commerzbank, Goldman Sachs, JPMorgan, and Morgan Stanley served as mandated lead arrangers. Then, April 17, 2024, the lending syndicate — still including BOC — entered into an amendment agreement with the borrowers for the RCF; in the amendment agreement, the lenders extended the maturity period of the RCF by one year — for a new maturity period of four years — for a new final maturity date in 2027, in line with the first extension option. In addition to the maturity extension, the borrowers executed the accordion option to increase the facility by €90 million EUR for a new face value of €1.29 billion EUR, with an additional lender joining the lending syndicate, bringing the total number of lenders to 16. Record ID#104908 captures BOC's contribution to the debt rescheduling. Then, in July 2024, the lending syndicate — still including BOC — entered into another amendment agreement with the borrowers for the RCF; in the amendment, the lenders extended the maturity period of the RCF by one year — for a new maturity period of five years — for a new final maturity date in July 2028, in association with the second extension option, with an additional one-year extension option. In addition to the maturity extension, the lenders increased the face value of the RCF by €115 million EUR to €1.405 billion EUR, with an additional lender joining the lending syndicate, brining the total number of lenders to 17 (12 Tier 1 banks, 5 Tier 2 banks). Record ID#104909 captures BOC's contribution to the debt rescheduling. As of July 2024, the RCF was undrawn.