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Cebu Air, Inc. (“Cebu Pacific” or “the Company”), with principal address in Cebu, Philippines, is a leading low-cost carrier and one of the largest airlines in the Philippines. In 2019, it carried 22.5 million passengers over 63 destinations. The Company is seeking financing from IFC to participate in its approximately US$500 million capital fundraising plan to (i) strengthen its balance sheet and ensure that it is well-positioned to recover from the impact of COVID-19 and (ii) implement a strategic transformation plan ensuring sustainable operations post-pandemic (the “Project”).The outbreak of the COVID-19 pandemic worldwide has had a severe impact on the aviation industry, with almost all players expecting revenue declines of over 50% during 2020 and embarking upon significant downsizing in the near term. The business operations of Cebu Pacific were severely impacted, as its passenger traffic has dropped by as much as 99 percent year-on-year during Q2 2020. In this difficult time, the proposed investment presents an opportunity to enable Cebu Pacific to continue to operate as a key low-cost provider of much needed connectivity across the country as well as the region for both tourism and business travel. Further, supporting a market leading carrier like Cebu Pacific navigate the crisis will aid in the recovery of other economic sectors with close linkages, particularly tourism and also prevent disruptions in regional supply chains.The proposed IFC investment to the Company consists of an equity-linked investment of up to US$125 million in the form of convertible bond or other similar instrument. The proposed investment includes the potential mobilization of financing from IFC Asset Management Company Emerging Asia Fund.