05/08/2025
7 minute read
Air France-KLM’s two Sustainability-Linked Bonds (SLBs) are approaching an important milestone.
The airline group has two SLBs tied to a sustainability performance target (SPT) that will be observed at the end of this year.
If the company fails to reduce Scope 1+3 emissions intensity by 10% from a 2019 baseline, it will have to give more to investors in coupon payments.
The SLBs showed more resilience than comparable vanilla debt in the aftermath of “Liberation Day” and Air France-KLM reporting, and are currently at the tightest spreads since December 2024.
We show how Japan’s Climate Transition Bond could be complemented with an SLB, to boost its green credentials
We propose a new bond structure to increase private investment in sustainable development
"Transition-linked bond" lacks materiality of an enhanced SLB
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