Viva’s sustainability goal is to reduce the carbon intensity of jet fuel emissions per revenue passenger-kilometre by 35% by 2029 compared to a 2015 baseline. The company said it already has a fleet with one of the lowest carbon dioxide emissions per passenger.
“This new sustainability-linked bond reaffirms our commitment to a more sustainable future,” Juan Carlos Zuazua, Viva’s CEO, said in a statement accompanying the announcement. The move aligns the airline’s goal with the Transition Pathway Initiative for decarbonization under a 1.5°C climate scenario, he said.
The airline has grown rapidly, surpassing Grupo Aeroméxico in number of domestic passengers. Just four years ago, Viva Aerobus ranked fourth in the local market, but it has gained ground in the low-cost market and expects to transport 20 million passengers this year, compared to 15 million in 2021.
The 5-year bonds were issued in the local market at an interest rate of TIIE28 plus 220 basis points. The proceeds of the financing will be used to redeem the company’s VIVAACB19 bond and for general corporate purposes.