Stephenson Harwood advises Cebu Pacific on its first sustainability-linked JOLCO financing

Law firm Stephenson Harwood LLP has advised Cebu Pacific on a Japanese Operating Lease with Call Option (JOLCO) financing for a new Airbus A321neo aircraft. The aircraft was delivered in December 2024.

The deal was arranged by Crédit Agricole Corporate and Investment Bank. This is the first sustainability-linked aircraft financing undertaken by Cebu Pacific and demonstrates the airline's commitment to decarbonisation. The financing features certain key performance indicators, including maintaining an annual ratio of the total amount of CO2 emitted by jet fuel consumed by the Cebu fleet against the volume of passengers carried, ensuring it remains below agreed levels.

Cebu Pacific is the largest airline in the Philippines by fleet size, operating flights to more than 60 domestic and international destinations across 14 countries, including Australia, China, Japan, Singapore and the United Arab Emirates. The airline has 90 A320neo family aircraft and 6 A330neos on order.

The Stephenson Harwood team included partner Saugata Mukherjee and associates Saurabh Negi and Bong Yumi.

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