Etihad issues sustainability-linked Sukuk

Etihad Airways has launched the world’s first Transition Sukuk and the first Sustainability-Linked financing in global aviation, under a Transition Finance Framework. This follows the first aviation financing linked to the United Nations Sustainable Development Goals raised in December 2019. The US$600 million transaction will support Etihad’s drive for sustainable aviation by linking the sukuk terms to Etihad’s carbon reduction targets: a commitment to Net Zero Carbon emissions by 2050; a 50% reduction in net emissions by 2035; and a 20% reduction in emissions intensity in the airline’s passenger fleet by 2025. “Sustainability and responsible climate action are the most