Etihad raises $ 1.2 billion in ESG loan

Etihad Aviation Group has raised $ 1.2 billion in debt via a Sustainability Linked Loan (SLL).

Etihad Aviation Group has raised $ 1.2 billion in debt via a Sustainability Linked Loan (SLL).

Clifford Chance provided legal advice to Etihad on the deal, which is the UAE’s national carrier’s largest sustainable funding to date.

Etihad’s strategic and financial partners in the transaction were HSBC and First Abu Dhabi Bank (FAB), the two institutions also acting as joint structuring banks in environmental, social and corporate governance (ESG) matters. , joint ESG coordinators, mandated principal arrangers and associated bookkeepers. FAB was also the facility agent for the agreement.

The transaction marks the first SLL linked to ESG objectives in the international aviation sector, with contractual terms linked to key performance indicators (KPIs) linked to ESG, which in turn are subject to independent evaluation and providing incentives and associated penalties.

These KPIs are: mitigating the airline’s carbon footprint towards the ultimate goal of net zero by 2050, increasing the participation and development of local women in the airline industry, and a high level of ethics, integrity and governance.

In a statement, Etihad Chief Financial Officer Adam Boukadida said, “Funding our operations in a way that supports both our planet and the people of our local communities is the natural next step in our strategy to funding. “

Clifford Chance brought in a team based in the United Arab Emirates and led by Nicola Reader, partner in Abu Dhabi, with the help of senior partner Andrew McAdam and partner Vany Attarian in Dubai.

In February, Kirkland & Ellis partnered with Linklaters to advise a consortium on the acquisition of Signature Aviation, valuing the British aviation services provider at $ 4.7 billion.

Comments are closed.