Cebu Pacific said Wednesday it secured Southeast Asia’s first sustainability-linked loan (SLL) for a low-cost carrier.
The airline unit of the Gokongwei Group said the loan facilitated the acquisition of a brand-new Airbus A321neo, which was delivered to the airline on Dec. 23, 2024.
The new engine option (NEO) aircraft, with improved fuel efficiency compared to previous generations, will contribute to CEB’s carbon emission reduction goals as it progresses toward transitioning to an all-NEO fleet by 2028.
As part of the SLL, CEB committed to performance targets aimed at reducing the carbon emission intensity of its aircraft fleet. Meeting these targets will result in financial incentives for the airline under the loan.
“Cebu Pacific’s first sustainability-linked aircraft financing is a milestone in our decarbonization journey, as the transaction supports the core element of our program—the modernization of our fleet towards more advanced and fuel-efficient aircraft,” said CEB chief financial officer Mark Cezar.
