Etihad Airways of the United Arab Emirates has secured a $1.2 billion loan in the first sustainability-related loan related to environmental, social and corporate governance objectives in the global aviation sector.< /p>
According to Arab Net, the company said in a statement that this deal is the largest sustainable financing deal in the history of aviation, and comes after the two innovative financing deals in aviation, the first sustainability-related transformational instruments in 2020, and the first loan in the aviation sector linked to the United Nations sustainable development goals in Year 2019.
Etihad Airways has selected HSBC and First Abu Dhabi Bank as strategic partners and financiers for this transaction.
In this regard, Etihad Aviation Group Chief Financial Officer Adam Boukadida said, “Etihad Airways has been at the forefront of sustainable financing in the sector, and we continue our innovative track record of being the first airline to receive a loan linked to the objectives of sustainability, ESG, and corporate governance.”
Boukadida added: Our goals will have a real impact on the world. To demonstrate our accountability, we have committed to imposing penalties and incentives of up to $5.5 million linked to our progress against the KPIs. We are also keen, through our Greenliner program, to achieve multiple initiatives related to sustainability in Etihad Airways, to improve the environmental footprint of the aviation sector, and green finance plays an important and significant role in our strategy.
The loan terms are linked to multiple KPIs, which are in turn linked to the following ESG initiatives which will be independently evaluated.
These include environmental governance initiatives focused on reducing the carbon intensity of the passenger fleet, as measured by carbon emissions per tonne kilometer of revenue.
As part of its popular Greenliner programme, Etihad Airways has committed to an ambitious goal of zero carbon emissions by 2050 and has set key targets for 2035 and 2025.
Etihad Airways has established a Global Business Solutions Services Center (GBSS) in the city of Al Ain in the UAE, to contribute to the social and economic development of the community, increase employment opportunities and enhance skills for Emirati women in Aviation sector.
She explained that the KPIs will be measured against the presence of women in the company and the initiatives provided to train and develop their professional skills.
