LCI AND SMFL ACHIEVE HIGHEST RATING FOR WORLD’S FIRST HELICOPTER SOCIAL LOAN FRAMEWORK
- Taps into US$1.6 trillion sustainable finance market -
9th November, 2023: LCI, a leading aviation company, and Sumitomo Mitsui Finance and Leasing Co., Ltd. (SMFL) have announced the development of the world’s first Social Loan Framework for helicopter leasing, finance and operations.
LCI and SMFL’s Social Loan Framework has received the highest rating of “Social 1(F)” from the Japan Credit Rating Agency.
The framework has been established initially for LCI’s joint venture leasing operation with SMFL, and in accordance with the internationally agreed Social Loan Principles developed in 2023 by the Loan Syndications and Trading Association (LSTA) (1). It will require funds to be used for eligible and verified Social Projects, which in LCI’s case will include search and rescue and emergency medical services.
Alan O’Rourke, CFO of LCI, says: "This innovative Social Loan Framework builds upon our proven track record of financial innovation and will make a meaningful difference to our customers and the communities they serve.
“It will require our Social Loans to adhere to a number of core principles including fund usage, calibration, characterisation, reporting and verification, all of which will support our drive to attract new and efficient forms of capital to the helicopter sector which have a positive social impact.”
The sustainable finance market grew to reach US$1.6 trillion globally in 2021, of which ~US$600bn was driven by the sustainability-linked loan (SLL) market according to Refinitiv data(2).
The framework is an integral part of LCI’s Environmental, Social, and Governance (ESG) programme, and reflects SMFL’s long term commitment to the UN’s Sustainable Development Goals as part of the company policy ‘The SMFL Way’.
LCI is also a signatory of Aircraft Leasing Ireland’s (ALI) Sustainability Charter, with a commitment to driving forward and achieving ESG related goals, centred around 10 priority sustainability principles, including a commitment to achieving net zero by 2050.
Notes to editors
(1) Social Loan Principles (SLP), Loan Syndications and Trading Association (LSTA) https://www.lsta.org/content/social-loan-principles-slp/
(2) Financing sustainable growth: An emerging opportunity. Sarah Strang Director, Debt & Capital Advisory, PwC United Kingdom. https://bit.ly/3Ql8y4M
About LCI
LCI is a leading aviation company that is uniquely positioned across the commercial fixed-wing, helicopter and advanced air mobility sectors. Since its inception in 2004, LCI has undertaken approximately US$10 billion of aviation transactions and provides leasing services to operators, Governments and end-users.
LCI is owned by Libra Group (www.libra.com), a privately-owned international business group whose subsidiaries own and operate assets in nearly 60 countries and Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) (www.smfl.co.jp). For more information, visit www.lciaviation.com.