LATAM Airlines Secures US$505 Million Sustainability-Linked Aircraft Financing

LATAM Airlines has secured a US$505 million sustainability-linked senior secured A/B term loan to finance the acquisition of 11 new-generation aircraft, including Airbus A320neo and A321neo aircraft and Embraer E195-E2s.

The financing supports LATAM’s first-ever order for Embraer E-Jets and links the loan terms to the airline’s greenhouse gas emissions reduction targets. The transaction represents LATAM’s first A/B term loan completed through a partnership between BNP Paribas and Jackson Square Aviation (JSA).

The financing was structured in two tranches, with BNP Paribas arranging the 12-year Series A facility and JSA providing the Series B tranche. BNP Paribas also acted as Sole Structuring Agent, Lead Arranger and Sustainability Coordinator.

The transaction underscores the growing use of sustainability-linked financing to support fleet modernization while aligning aircraft investment with airlines’ long-term environmental objectives.