Dubai: Abu Dhabi's Etihad Airways has issued a Dh2.2 billion sukuk linked to its sustainability targets. The terms of the Sharia-compliant bond will have the airline reduce net emissions by half by 2035 and reach net zero carbon emissions in 2050.
While part of the funds will be used for new aircraft purchases, Etihad also seeks to attain a 20 per cent reduction in 'emissions intensity' across its passenger fleet by 2025. And $300 million will be used for an early repayment of a debt exposure due next year.
"Sustainability and responsible climate action are the most significant challenges facing the aviation industry, " said Adam Boukadida, Chief Financial Officer, Etihad Aviation Group, in a statement.
"As the UAE’s flag carrier, Etihad is committed to sustainable development in aviation in line with Abu Dhabi’s vision."
For the deal, HSBC and Standard Chartered Bank were joint global coordinators and 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 and bookrunners.