Etihad Airways announced the issuance of the world’s first $ 600 million transfer and sustainability financing sukuk in the aviation sector, as part of a transformation financing framework.
This step comes on the heels of the issuance of the first funding in the aviation sector linked to the United Nations sustainable development goals during December of last year, which confirms the pioneering position of “Etihad Airways” in the field of sustainable financing.
The deal will support the company’s march in the sustainable aviation sector, by linking the terms of the sukuk to the carbon reduction goals set by Etihad Airways, which are the commitment to reduce net carbon emissions to zero by 2050 and reduce 50% of net carbon emissions by 2035. And reduce 20% of the carbon emissions from the company’s passenger fleet by 2025.
Adam Boukadida, Chief Financial Officer at Etihad Aviation Group, said, “Sustainability and responsible climate action are the most important challenges facing the aviation sector. As the national airline of the UAE, Etihad Airways is committed to sustainable growth in the aviation sector, in line with the vision of Abu Dhabi”.
He added, “By issuing sukuk related to sustainability, (Etihad Airways) seeks to reinforce its current commitment in accordance with the Carbon Offset and Reduction Scheme in International Aviation (CORSIA), and has also committed to reducing carbon emissions by 20% since 2017.”
It is noteworthy that HSBC and Standard Chartered banks have been appointed as global coordinators and joint agents for sustainable structuring, while Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi and HS have been appointed. PC ”and“ Standard Chartered ”as the main regulators and Registered Bookrunners. Abu Dhabi Commercial Bank was also chosen as the Joint Chief Regulator, and Mashreq Bank as the financial advisor.
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