Norton Rose Fulbright represents LATAM Airlines Group S.A. in US$300 million sustainability-linked financing

A cross-border team of lawyers from Norton Rose Fulbright represented LATAM Airlines Group S.A. (LATAM) in obtaining a US$300 million sustainability-linked loan, making LATAM the first airline in South America to secure sustainable financing.

This inaugural transaction includes sustainability-linked terms that could allow LATAM to receive price adjustments based on its performance against carbon emission intensity of operations, measured as tons of CO2 emissions/revenue per ton-kilometer. It also corresponds to a revolving credit line that will allow LATAM access to additional financing under special interest rates if a series of sustainability-related goals are met.

Provided by Credit Agricole Corporate & Investment Banking and BNP Paribas, the loan is part of a refinancing that provided a reduction in interest rates for LATAM and also supports the airline’s goal of achieving net-zero emissions by 2050.

Norton Rose Fulbright’s deal team was led by Alyssa Vazquez and Ryan Apar with assistance from Gaetano Taormina, Tonny Mugisha (New York) and Emma Giddings (London).