UAE - Mubasher: Etihad Airways has secured $1.2 billion in its first and largest sustainability-linked loan (SLL) related to environmental, social, and governance (ESG) targets in global aviation.

The transaction came following two innovative aviation financing deals, comprising the first of its kind sustainability-linked transition Sukuk in 2020 and a loan tied to the UN Sustainable Development Goals in 2019, according to a press release on Wednesday.

Etihad has selected HSBC and First Abu Dhabi Bank (FAB) as the strategic partners and financiers for the transaction.

The Chief Financial Officer at Etihad Aviation Group, Adam Boukadida, said: "Our goals will have a real-world impact, and to underscore our accountability, we have committed to penalties and incentives of up to $5.5 million linked to our progress against key performance indicators."

Meanwhile, the CEO of HSBC UAE and Head of International Markets, Abdulfattah Sharaf, commented: "This is our second sustainability-linked transaction with Etihad, sending a strong signal that two global companies with leading UAE businesses – such as HSBC and Etihad – are committed to working in partnership to find innovative ways to finance industry while also protecting the planet."