KHALEEJ TIMES, Thursday, Oct 14, 2021 | Rabi Al-Awwal 8, 1443
Etihad raises $1.2 billion in sustainability-linked debt
Emirates:
Etihad Airways said on Wednesday it has raised $1.2 billion with a loan linked
to environmental, social and governance (ESG) targets in global aviation.
The airline said this was the first sustainability-linked loan in global
aviation tied to ESG targets, which relate to reducing carbon emissions and
improving corporate governance in addition to advancing female participation.
“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,” the group’s CFO Adam Boukadida said.
Etihad has committed to a target of net zero carbon emissions by 2050.
HSBC and FAB acted as joint ESG structuring banks, joint ESG coordinators, joint
bookrunners and mandated lead arrangers. FAB also acted as facility agent.
Last year, Etihad raised $600 million in “transition” sukuk, or Islamic bonds,
which are used by companies to switch to more environmentally sustainable
operations.
It also raised a 100 million euro loan in 2019 tied to the United Nations
Sustainable Development Goals.