VivaAerobus (VB, Monterrey Mariano Escobedo) parent Grupo Viva Aerobus SA has raised MXN1 billion pesos (USD51.4 million) by issuing a sustainability-linked bond listed on the Institutional Stock Exchange (Bolsa Institucional de Valores - BIVA), Mexico’s second stock exchange, it announced on November 17. The five-year bonds will pay off notes that mature in 2024.
The budget airline said that the sustainability-linked bonds (SLBs), its first such issue, were priced at Mexico’s interbank lending rate (Tasa de interés interbancaria de equilibrio - TIIE) plus 220 basis points. It tied the interest rate to its target to reduce carbon dioxide emissions by 35.4% by 2029, compared to 2015 levels.
The bonds are listed under the ticker VIVAACB 22L, and “the proceeds from this issuance will be used to redeem VIVAACB19 bond and for general corporate purposes.”
The company said it “is committed to integrating sustainability in its everyday operations as well as in its investment and financing strategy. With the introduction of Airbus A320neo-family aircraft in 2016, Viva started its transition towards environmentally friendly new aircraft technology.” It now has “one of the youngest and most fuel-efficient fleets” in the Americas.
According to the ch-aviation fleets module, VivaAerobus currently operates twenty A320-200Ns, thirteen A321-200NXs (with 30 more on order), and three A321-200NX(LR)s, alongside twenty-two A320-200s and nine A321-200s.
The carrier has grown rapidly in recent years, overtaking legacy airline Grupo Aeroméxico by domestic passenger numbers, Bloomberg News reported. It expects to carry 20 million passengers this year, up from 15 million in 2021.
