Etihad Airways raises US$1.2 billion in first sustainability-linked ESG loan in global aviation

Etihad Airways raises US$1.2 billion in first sustainability-linked ESG loan in global aviation

ABU DHABI, 13th October, 2021 (WAM) -- Etihad Airways has raised US$1.2 billion in the first sustainability-linked loan (SLL) tied to environmental, social and governance (ESG) targets in global aviation.

The transaction is the largest sustainable financing in the airline’s history and follows two innovative aviation financing deals - a first-of-a-kind sustainability-linked transition sukuk in 2020 and a loan tied to the UN Sustainable Development Goals in 2019.

Adam Boukadida, Chief Financial Officer at Etihad Aviation Group, said, "Etihad Airways has spearheaded sustainable financing in aviation, and we are proud to continue our innovative track record by being the first airline to secure a sustainability-linked ESG loan. Financing our operations in a way that supports both our planet and the people in our local communities is the natural next step of our financing strategy.

"Our goals will have a real-world impact, and to underscore our accountability, we have committed to penalties and incentives of up to US$5.5 million linked to our progress against key performance indicators. 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."

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