UAE’s Etihad issues $600m sustainability-linked sukuk

UAE’s Etihad issues $600m sustainability-linked sukuk

UAE's Etihad Airways has issued a $600m sukuk which is linked to its carbon reduction targets.

The airline has committed to net zero carbon emissions by 2050 and a 50 per cent reduction in net emissions by 2035.

It is also aiming to achieve a 20 per cent reduction in emissions intensity in its passenger fleet by 2025.

The carrier says that it is the world's first Transition Sukuk and the first Sustainability-Linked financing in global aviation, under a Transition Finance Framework.

"By issuing a Sustainability-Linked Sukuk, Etihad is voluntarily adding to its existing commitments under CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), and also committing to reduce carbon emissions intensity by over 20 per cent from the 2017 baseline,“ says Adam Boukadida, chief financial officer of Etihad Aviation Group.

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