Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 157

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 157
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. S. $20.6 million as of December 31, 2024, based on an exchange
rate of Ps. 20.27 to U. S. $1) in 2023, 2024, 2025 and 2026, respectively, and bear annual interest at TIIE 28 days plus 200 basis points,
and adjustment of twenty-five (25) basis points starting on September 20th, 2023. The notes started amortizing at the end of the second
year.

The asset backed trust notes issued in 2021 comply with the
Sustainability-Linked Bond Principles of 2020, developed by the International Capital Market Association (“ ICMA”). The notes
have Sustainability Objectives (“ SPT”), for the KPI, to reduce carbon dioxide emissions measured as grams of CO2 emissions
per revenue passenger/kilometer (gCO2 / RPK) by 21.54%, 24.08% and 25.53% by 2022, 2023 and 2024, respectively, compared to 2015 levels.
This offering will help us accomplish our long-term sustainable goals, among which are to reduce CO2 emissions by 35.42% by 2030, compared
to 2015 levels. A feature of the asset backed trust notes is that they will pay an additional 25 basis points to the interest rate if
the sustainability goals are not met for 2022, with the possibility of reducing the additional rate if the 2023 or 2024 targets are met.
On September 20, 2023, the interest rate increased by 25 basis points, with the possibility of mitigating the additional rate if goals
are met for the incoming years.

On September 28, 2023, the CNBV approved an increase amount
of the actual program up to Ps. 5.0 billion (US$246.7 million, based on an exchange rate of Ps.20.27 to US$1 on December 31, 2024) with
this authorization, our subsidiary Volaris Opco issued 15,000,000 asset backed trust notes under the ticket VOLARCB23 for Ps.1.5 billion
(US$74 million, as of December 31, 2024 based on an exchange rate of Ps.20.27 to U. S.$1) through Irrevocable Trust number CIB/3249 created
by Volaris