Etihad raises $1.2 billion in debt with sustainability component.
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Etihad Airways announced on Wednesday that it has raised $1.2 billion through a loan tied to global aviation’s environmental, social, and governance (ESG) standards.
According to the airline, this is the first sustainability-linked loan in global aviation aligned to ESG targets, which include lowering carbon emissions and enhancing corporate governance, as well as increasing female involvement.
“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 pledged to achieve net zero carbon emissions by 2050.
HSBC (L: HSBA) and FAB (AD: FAB) collaborated on ESG structuring, ESG coordination, joint bookrunners, and mandated lead arrangers. FAB also served as the facility’s agent.
Etihad raised $600 million in “transition” sukuk, or Islamic bonds, last year, which are used by businesses to move to more environmentally sustainable operations. In 2019, it also raised a 100-million-euro loan connected to the UN Sustainable Development Goals.
Story by : Norvisi Mawunyegah