Etihad Airways issues $ 600 million in sustainability sukuk
Etihad Airways announced the issuance of the world’s first US $ 600 million transfer sukuk and sustainability-related financing in the aviation sector, as part of a transformation financing framework.
The official news agency (WAM) stated that 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.
According to the agency, the deal will contribute to supporting Etihad Airways’s march in the sustainable aviation sector by linking the terms of the sukuk (Islamic bonds) with the company’s carbon emissions reduction goals, which are represented in the commitment to reduce them to zero by 2050, gradually starting with a 50 percent reduction. Of net carbon emissions by 2035, and a 20 percent reduction in carbon emissions from the company’s passenger fleet by 2025.
“Sustainability and responsible climate action are the most important challenges facing the aviation sector,” said Adam Boukadida, chief financial officer for the Etihad Aviation Group, owned by the government of Abu Dhabi.
As the national airline of the country, Etihad Airways is committed to sustainable growth in the aviation sector, in line with Abu Dhabi’s vision. ”
“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 percent since 2017,” he added.
The agency indicated that HSBC and Standard Chartered banks have been appointed as global coordinators and joint agents for sustainable structuring.