Landmark issuance tied to investments in next generation aircraft and emissions reduction
Etihad Airways recently launched the world’s first Transition Sukuk and the first sustainability-linked financing in global aviation, under a Transition Finance Framework.
This follows the first aviation financing linked to the United Nations Sustainable Development Goals raised in December 2019, further confirming Etihad’s role as an industry leader in sustainable finance, a press communiqué stated.
The US$ 600mn transaction will support Etihad’s drive for sustainable aviation by linking the sukuk terms to Etihad’s carbon reduction targets: a commitment to Net Zero Carbon emissions by 2050; a 50% reduction in net emissions by 2035; and a 20% reduction in emissions intensity in the airline’s passenger fleet by 2025.
“By issuing a Sustainability-Linked Sukuk, Etihad is voluntarily adding to its existing commitments under CORSIA, and also committing to reduce carbon emissions intensity by over 20% from the 2017 baseline,” commented Adam Boukadida, Chief Financial Officer, Etihad Aviation Group.
