Etihad secures $1.2 billion in its first sustainability-linked ESG loan in aviation
Etihad Airways said on Wednesday it had secured $1.2 billion in a loan tied to environmental, social, and governance (ESG) goals in global aviation, according to DUBAI, Oct 13.
The airline claimed this was the airline's first sustainability-linked loan in global aviation that was tied to ESG goals, which include reducing carbon emissions and improving corporate governance, as well as advancing female participation.
"Through our Greenliner initiative, we are pursuing multiple sustainability-related initiatives at Etihad Airways to improve the environmental footprint of aviation, and green financing is a vital component of our strategy," said the business's CFO Adam Boukadida.
Etihad has committed to a net zero carbon emissions target by 2050.
HSBC is a subsidiary of HMBC.
Last year, Etihad raised $600 million in "transition" sukuk, or Islamic bonds, which are used by firms to transition to more environmentally sustainable practices.
In 2019, it also secured a 100 million euro loan in connection with the United Nations Sustainable Development Goals.