Etihad Airways Issues USD 600 Million Sustainability-Linked Sukuk

Etihad Airways (Etihad), which is wholly owned by the Abu Dhabi Government of the United Arab Emirates, has issued a USD 600 million Sukuk linked to reducing carbon emission targets.

The Sukuk, which is touted by the airline as being the world’s first Transition Sukuk, is also the first sustainability-linked financing in global aviation and comes under a Transition Finance Framework, as reported by media. The airline has committed to a 20% reduction in carbon emissions intensity by 2025, 50% reduction by 2035, and net zero carbon emissions by 2050, according to media reports.

According to Adam Boukadida, Chief Financial Officer of Etihad Aviation Group, Etihad was committed to...