UAE Business: Etihad raises $1.2bn in debut sustainability-linked ESG loan – Gulf Digital News

UAE Business: Etihad raises $1.2bn in debut sustainability-linked ESG loan – Gulf Digital News

UAE's national airline Etihad Airways has raised $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.

 

The Abu Dhabi carrier had selected HSBC and First Abu Dhabi Bank (FAB) as the strategic partners and financiers for this transaction. HSBC and FAB acted as joint ESG structuring banks, joint ESG co-ordinators, joint bookrunner and mandated lead arranger. FAB also acted as facility agent.

  

On the deal, Chief Financial Officer Adam Boukadida 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 $5.5 million linked to our progress against