Etihad Airways raises US$1.2bn in contemporary funding
Etihad Airways has raised US$1.2 billion within the first sustainability-linked mortgage tied to environmental, social and governance targets in international aviation.
The transaction is the most important sustainable financing within the historical past of the airline and follows two revolutionary aviation financing offers – a first-of-a-kind sustainability-linked transition sukuk in 2020 and a mortgage tied to the UN Sustainable Growth Objectives in 2019.
Adam Boukadida, chief monetary officer at Etihad Aviation Group, stated: “Etihad Airways has spearheaded sustainable financing in aviation, and we’re proud to proceed our revolutionary monitor report by being the primary airline to safe a sustainability-linked ESG mortgage.
“Financing our operations in a approach that helps each our planet and the folks in our native communities is the pure subsequent step of our financing technique.”
He added: “Our objectives could have a real-world influence, and to underscore our accountability, we’ve dedicated to penalties and incentives of as much as US$5.5 million linked to our progress towards key efficiency indicators.
“By means of our Greenliner programme, we’re pursuing a number of sustainability-related initiatives at Etihad Airways to enhance the environmental footprint of aviation, and inexperienced financing is a key a part of our technique.”
The mortgage phrases are linked to a number of key efficiency indicators which can be tied to the next ESG initiatives and might be independently assessed.
Etihad Airways chosen HSBC and First Abu Dhabi Financial institution because the strategic companions and financiers for this transaction.