Heathrow celebrates its Sustainability-Linked Bond issuance

London Stock Exchange today welcomes the Heathrow team to celebrate its first Sustainability-Linked Bond (SLB) and the first in the market to include ‘in the air’ emissions from aircraft.

The company issued its first SLB, a €650 million 10-year trade using the 2030 Sustainability Performance Targets (‘SPTs’). This transaction reinforces the airport’s commitment to sustainability by incorporating it into its funding strategy. The bond proceeds were swapped back to GBP, and this included the company’s first Sustainability-Linked Derivative (‘SLD’). The SLD has the same 2030 Sustainability Targets as the Bond. If the targets are missed, the premium on the cost of the transaction will be paid to the swap counterparty’s charity of choice.

The team celebrating on the balcony at LSEG during the welcome ceremony.

Heathrow also published its Sustainability-linked Bond framework, where elected Key Performance Indicators (‘KPIs’) address 100% of its carbon footprint – including scope 3 emissions from airlines. The ambitious Sustainability Performance Targets (‘SPTs’) for 2026 and 2030 will help track Heathrow’s progress towards its sustainability objectives over the coming years.

Heathrow continues to take a leading role in decarbonising the aviation sector and ensuring the communities around the airport can be a great place to live and work. Heathrow has received science-based validation from the SBTi for our 2030 carbon reduction goals, confirming they are consistent with a 1.5-degree carbon reduction trajectory. Heathrow is the first airport to achieve this status with SBTi’s updated 1.5 degrees standard.

“Aviation must decarbonise and I’m proud that Heathrow is playing a leading role in pushing the sector towards net zero. Issuing the world’s first SLB targeting in the air aircraft emissions with targets which have been independently and scientifically verified is a huge step forward and I’m hopeful many others in our sector will follow our lead so that we can accelerate progress towards net zero aviation.”

John Holland-Kaye
Chief Executive at Heathrow Airport

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