Etihad Airways has raised $1.2 billion in the first sustainability-linked loan (SLL) tied to environmental, social and governance (ESG) targets in global aviation.
It represents the largest sustainable financing in the Abu Dhabi-based carrier’s history and follows two previous aviation financing deals – a sustainability-linked transition sukuk in 2020 and a loan tied to the UN Sustainable Development Goals in 2019.
Adam Boukadida, chief financial officer at Etihad Aviation Group, said: “Financing our operations in a way that supports both our planet and the people in our local communities is the natural next step of our financing strategy.
We have raised US$1.2 billion in the first sustainability-linked loan (SLL) tied to environmental, social, and governance (ESG) targets in global aviation.https://t.co/cJ31oLS91B pic.twitter.com/rKEWBlZJs3
— Etihad Airways (@etihad) October 13, 2021
“Our goals will have a real-world impact, and to underscore our accountability, we have committed to penalties and incentives of up to $5.5 million linked to our progress against key performance indicators.”
Last year, Etihad committed to purchasing carbon offsets to completely neutralise the CO2 emissions of its flagship Greenliner 787-10 aircraft for a full year of operations in 2021.
The initiative marked the start of the airline’s journey to reduce CO2 emissions to 50 percent of 2019 levels by 2035, and to achieve full net zero emissions by 2050, and was a first for any airline in the Gulf.
Boukadida added: “Through our Greenliner programme, we are pursuing multiple sustainability-related initiatives at Etihad Airways to improve the environmental footprint of aviation, and green financing is a key part of our strategy.”
HSBC and First Abu Dhabi Bank (FAB) were the strategic partners and financiers for the transaction.
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