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Press Release: SITA signs sustainability-linked syndicated credit facility

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Press Release hub banner blue with title in red white and blueSITA, a global IT provider for the aviation industry, has signed a $400m inaugural sustainability-linked revolving credit facility over a minimum three-year term. The backup facility will support the company’s general business needs, such as developing new solutions and strategies to alleviate the air transport industry’s challenges of today and in the future.

The syndication was oversubscribed. As part of the arrangement, four new banks have signed up to support SITA in addition to the company’s five existing banking partners, underlining investor confidence in the technology provider. SITA’s robust cost control, effective cash management, and strengthening green credentials are factors contributing to investor interest.

This new backup syndicated facility will supersede the company’s previous bilateral committed lines and is now directly linked to pre-agreed environmental KPIs and yearly targets, with a bonus or a malus on the interest margin depending on SITA’s performance.

In recent years, SITA has ramped up its emission reduction efforts, achieving CarbonNeutral® status under The CarbonNeutral Protocol in 2021. More recently, the company announced its commitment to setting science-based targets via the Science Based Targets initiative (SBTi) to join other leading companies to combat climate change aligned to net-zero and the 1.5oC scenario of the Paris Agreement.

The syndicated credit facility linked to environmental performance is an innovative step forward in the company’s ongoing sustainability efforts. It includes significant reduction targets relating to Scope 1, 2, and 3 greenhouse gas emissions to align with SBTi frameworks. SITA’s performance against these targets will be externally audited.

Société Générale and Crédit Industriel et Commercial are acting as joint coordinators and bookrunners of the transaction. Société Générale has been mandated as ‘ESG Coordinator’ and ‘Facility Agent’ while Crédit Industriel et Commercial acted as ‘Documentation Agent’. In addition, Barclays, Credit Suisse, and J.P. Morgan joined as mandated lead arrangers. Bank of China, Landesbank Baden-Württemberg (LBBW), and Unicredit are taking part as lead arrangers while Banco Bilbao Vizcaya Argentaria (BBVA) is taking part as arranger.

Nicolas Husson, CFO of SITA, said: “Sustainability is high on our agenda and we are deeply committed to ensuring a sustainable future for all, including for our employees, customers, and partners. We are delighted to secure financing that is directly linked to the performance of our sustainability ambitions.”

Resources: SITA’s latest CSR and sustainability report is available here

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About SITA

SITA is the air transport industry’s IT provider, delivering solutions for airlines, airports, aircraft and governments. Our technology powers more seamless, safe and sustainable air travel.

With around 2,500 customers, SITA’s solutions drive operational efficiencies at more than 1,000 airports while delivering the promise of the connected aircraft to customers of 17,000 aircraft globally. SITA also provides technology solutions that help more than 70 governments strike the balance of secure borders and seamless travel. Our communications network connects every corner of the globe and bridges 60% of the air transport community’s data exchange.

In 2021, SITA became a certified CarbonNeutral® company in accordance with The CarbonNeutral Protocol – the leading global standard for carbon neutral programs. We are reducing our greenhouse gas emissions for all our operations through our UN-recognized Planet+ program, while also developing solutions to help the aviation industry meet its carbon reduction objectives, including reduced fuel burn and greater operational efficiencies. In 2022, we announced our commitment to setting science-based emission reduction targets aligned to the Science Based Targets initiative Net-Zero Standard.

SITA is 100% owned by the industry and driven by its needs. It is one of the most internationally diverse companies, providing services in over 200 countries and territories.

Featured image credited to SITA