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.
The USD600 million 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 percent reduction in net emissions by 2035; and a 20 percent reduction in emissions intensity in the airline’s passenger fleet by 2025.
Adam Boukadida, chief financial officer, Etihad Aviation Group, said, “Sustainability and responsible climate action are the most significant challenges facing the aviation industry. As the UAE’s flag carrier, Etihad is committed to sustainable development in aviation in line with Abu Dhabi’s vision. 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 percent from the 2017 baseline.”