23/02/2026
2 minute read
Air France-KLM has announced that the target referenced to its two SLBs has not been achieved
Current market pricing suggests the short-dated SLB, the 7.25% 2026, has outperformed 0.2% in the past few days. This bond will now receive an increased 0.75% redemption at maturity.
The longer-dated SLB, the 8.125% 28s, does not appear yet to have reacted. The coupon step-up is worth c32bp running on this bond.
Bloomberg has not yet adjusted the payment terms for either bond.
Airline is likely to miss SLB target and trigger coupon step-up
245 SLBs have target observations in 2025 – an important test for the market
Chile's recent CLP sustainability linked bond makes it the second largest SLB issuer
South Korean issuer could lose out amidst a green steel boom
Air France-KLM's sustainability-linked bond is a step towards transparent transition, but the industry still has its head in the sand.
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