Wednesday, October 13, 2021 – 3:40 PM
ABU DHABI, 13th October, WAM – Etihad Airways has raised $1.2 billion in its first sustainability-related loan related to environmental, social and corporate governance objectives in the global aviation sector.
The deal is the largest sustainable financing deal in aviation history and follows on the heels of two innovative aviation financing deals, the first sustainability-linked transformational instruments in 2020, and the first aviation loan linked to the United Nations Sustainable Development Goals in 2019.
Adam Boukadida, Etihad Aviation Group Chief Financial Officer, said: “Etihad Airways has been at the forefront of sustainable financing in the sector, and we are proud to continue our innovative track record of being the first airline to receive a ESG-related loan.
Undoubtedly, financing our operations in a way that we support the health of our planet and our local communities is the natural next step for our financing strategy.”
He added, “Our goals will have a real impact on the world. Emphasizing our accountability, we have committed to imposing penalties and incentives of up to $5.5 million linked to our progress against KPIs. We are also keen, through our Greenliner program, to achieve multiple sustainability initiatives at Etihad Airways, to improve The environmental footprint of the aviation sector, and green finance plays an important and significant role in our strategy.”
The terms of the loan are linked to multiple KPIs, which in turn are linked to ESG initiatives.
Etihad Airways has selected HSBC and First Abu Dhabi Bank as strategic partners and financiers for the transaction.
Abdul Fattah Sharaf, CEO of HSBC UAE and Head of International Business, said: “HSBC is committed to helping spearhead the transition to a carbon-neutral economy and we are leveraging financing and accelerating innovation to achieve this goal, by working in partnership with our customers to achieve the opportunity to build A more sustainable, resilient and prosperous future.This is our second sustainability-related deal with Etihad Airways, and delivers a strong message that two global companies with pioneering businesses in the UAE – such as HSBC and Etihad Airways – are committed to working in partnership to find innovative ways to finance the air transport sector to side of protecting the planet we live in.
For his part, Martin Tricaud, Head of Investment Banking for the First Abu Dhabi Bank Group, said: “We congratulate Etihad Airways on the successful completion of the loan deal linked to the sustainability goals. .
WAM/ Ahmed Al Nuaimi/ Abdel Nasser Moneim