Etihad Airways secures $1.2bn in a sustainability-linked loan tied to ESG goals – The National

Etihad Airways secures $1.2bn in a sustainability-linked loan tied to ESG goals – The National

Etihad Airways raised $1.2 billion in a loan tied to environmental, social and governance (ESG) goals, marking its third sustainable financing transaction after the airline pledged in 2020 to reach net-zero carbon emissions by 2050.

The structure of the loan, which was closed on October 1, includes a $500 million four-year tranche and a $700m five-year tranche, Adam Boukadida, chief financial officer of Etihad Aviation Group, told The National.

"This will be by far the biggest of three green transactions that we've done over the last three years and is the first ESG-linked loan for Etihad and for aviation globally," he said. "It's a sizable transaction and sustainable financing is very much part our finance DNA and a key part of our strategy now and in the future."