ABU DHABI, 29th October, 2018 (WAM) – Etihad Airways announced the issuance of the first Sukuk for transformation and financing related to sustainability in the aviation sector in the world, worth $ 600 million, as part of a framework to finance the transition.
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 leading position of Etihad Airways in the field of sustainable financing.
The deal will support Etihad’s drive in the sustainable aviation sector by linking the terms of the sukuk to the carbon reduction targets set by Etihad Airways, which are the commitment to reduce net carbon emissions to zero by 2050, reduce 50 percent of net carbon emissions by 2035 and reduce by 20 percent. Percent of 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, and as the national airline of the UAE, Etihad Airways is committed to sustainable growth in the aviation sector, in line with Abu Dhabi’s vision.”
He added, “By issuing sukuk related to sustainability, Etihad Airways is seeking 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 per cent since 2017.”
It is worth noting 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, HSBC and Standard Chartered have been appointed as lead regulators and Registered Bookrunners. In addition, Abu Dhabi Commercial Bank was selected as the joint principal regulator and Mashreq Bank as the financial advisor.
– He praised –
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