- Successful tender offer secures US$ 300 million early repayment of 2021 maturity
- Landmark issuance tied to investments in next generation aircraft and commitments to CO2 emissions reduction – demonstrating Abu Dhabi’s and Etihad’s ongoing commitment to sustainability
Abu Dhabi, United Arab Emirates – Etihad Airways, the national airline of the United Arab Emirates, has launched the world’s first Transition Sukuk and the first Sustainability-Linked financing in global aviation, under a Transition Finance Framework. This follows the first aviation financing linked to the United Nations Sustainable Development Goals raised in December 2019, further confirming Etihad’s role as an industry leader in sustainable finance.
The US$ 600 million transaction will support Etihad’s drive for sustainable aviation by linking the sukuk terms to Etihad’s carbon reduction targets: a commitment to Net Zero Carbon emissions by 2050; a 50% reduction in net emissions by 2035; and a 20% reduction in emissions intensity in the airline’s passenger fleet by 2025.
Adam Boukadida, Chief Financial Officer, Etihad Aviation Group, said: “Sustainability and responsible climate action are the most significant challenges facing the aviation industry. As the UAE’s flag carrier, Etihad is committed to sustainable development in aviation in line with Abu Dhabi’s vision.
“By issuing a Sustainability-Linked Sukuk, Etihad is voluntarily adding to its existing commitments under CORSIA, and also committing to reduce carbon emissions intensity by over 20% from the 2017 baseline,” added Boukadida.
HSBC and Standard Chartered Bank acted as Joint Global Coordinators and Joint Sustainability Structuring Agents. Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered Bank acted as Joint Lead Managers & Bookrunners. Abu Dhabi Commercial Bank acted as Joint Lead Manager, and Mashreq Bank acted as Financial Advisor.
-Ends-
For more information, please contact:
Duty Media Officer
Etihad Airways
Email: dutymediaofficer@etihad.ae
© Press Release 2020
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