The deal is the largest sustainable financing deal in aviation history and follows on the heels of two innovative aviation financing deals, the first sustainability-linked transformational instruments in 2020, and the first aviation loan linked to the United Nations Sustainable Development Goals in 2019.
Adam Boukadida, Etihad Aviation Group Chief Financial Officer, said: “Our goals will have a real impact in 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 terms of the loan are linked to multiple KPIs, which in turn are linked to ESG initiatives.
Etihad Airways has selected HSBC and First Abu Dhabi Bank as strategic partners and financiers for the transaction.
Abdul Fattah Sharaf, CEO of HSBC UAE and Head of International Business, said: “HSBC is committed to helping lead the transition to a carbon-neutral economy, and we are leveraging financing and accelerating innovation to achieve this goal, by working in partnership with our customers to achieve the opportunity to build a more sustainable future. Flexibility and prosperity. This is our second sustainability deal with Etihad Airways, and sends a strong message that two global companies with pioneering businesses in the UAE – such as HSBC and Etihad Airways – are committed to working in partnership to find innovative ways to finance the air transport sector while protecting the planet we live in. in it”.
Martin Tricaud, Head of Investment Banking for the First Abu Dhabi Bank Group, said: “We congratulate Etihad Airways on the successful completion of the loan deal linked to the sustainability goals; As a strategic partner and financier of this transaction, we affirm our firm commitment to employing our financial expertise to support the sustainability of the aviation sector.”
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