In the aviation world, Etihad Airways has made its presence felt by launching the world’s first transition sukuk, followed by financing associated to the United Nations Sustainable Development Goals, raised last year in December.
The transaction worth US$600 million will cushion Etihad’s focus for sustainability by connecting company’s carbon reduction targets and sukuk terms to meet the needs to Net Zero Carbon emissions by 2050; with 50% reduction in net emissions by the year 2035. Additionally, the airline aims at 20% lowering emissions intensity passenger fleet by 2025.
In a statement, Chief Financial Officer of Etihad Group, Adam Boukadida remarked that responsible climate action and sustainability are the dire challenges faced in the aviation industry and Etihad is committed to take sustainable measures aligned to Abu Dhabi’s goals.
Additionally, with the issuance of a sustainability-linked Sukuk, the airline will be adding to its commitments under CORSIA consciously, alongside commitment towards reduction of carbon emissions by 20% compared to the 2017 threshold, he said.
Serving as the Joint Global Coordinators and Joint Structuring Agents, HSBC along with Standard Chartered Bank are working towards the common goals.