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Sustainability-Linked Bonds

Air France-KLM SLBs 2025 observation

Written by Emiel Loh & Josephine Richardson

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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.

About the authors

Emiel Loh

Emiel Loh

Emiel was formerly a Research Analyst at AFII.

Josephine Richardson

Josephine Richardson

Managing Director, Head of Research

Based in London, Jo leads AFII’s research and a global team supporting fixed income investors as they align their portfolios with climate and sustainability goals. She joined AFII after 18 years in fixed income markets at JPMorgan.

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