Etihad Airways, the national carrier of the United Arab Emirates (UAE), has announced that it has become the first airline to secure funding for a project based on its compatibility with the United Nations (UN) Sustainable Development Goals (SDGs). Through a partnership with First Abu Dhabi Bank and Abu Dhabi Global Market, the airline will borrow AED 404.2 million (EUR 100 million) to support an expansion of the Etihad Eco-Residence, a sustainable apartment complex for the airline’s cabin crew.
Adam Boukadida, Senior Vice President Treasury, Tax and Finance, Etihad Aviation Group, said the process to secure the loan hinged on a detailed international verification of the airline’s sustainability credentials.
We are proud to be the first airline globally, and one of the first companies in the UAE, to obtain commercial funding based on our commitment to the Sustainable Development Goals of the United Nations. This assessment will enable us to fund long-term leases of the new Eco-Residence complex, located in Abu Dhabi’s Masdar City innovation precinct, and will serve as the foundation for Etihad to fund future sustainable initiatives. It will also highlight the growing specialisation of Abu Dhabi as a centre of excellence for financing sustainable projects, at a time of increasing global demand for ethics-based development, Adam Boukadida said.
To support this financing, Etihad established a Sustainable Development Financing Framework, which specifies a range of projects for which funding can be provided.
Financing of these projects must be linked to one or more of the Sustainable Development Goals. Etihad has identified seven priority categories – Green Buildings, Investment in Women, Biofuels, Reduction of Carbon Footprint, Waste Management and Recycling, Humanitarian Efforts, and Wildlife Protection.
The Etihad Eco-Residence, a LEED Platinum rated building, met the requirements for two of the UN’s 17 Sustainable Development Goals – Goal 7, Affordable and Clean Energy, and Goal 9, Industry, Innovation and Infrastructure.
In addition, Etihad Aviation Group engaged Sustainalytics, a global leader in ESG research, ratings and analytics, to review the Etihad Sustainable Development Financing Framework, and confirm alignment with the Sustainability Bond Principles of the International Capital Markets Association. Sustainalytics issued a Second Party Opinion verifying Etihad’s sustainability credentials, a key condition to raising capital.
Our decision to seek an independent review of our credentials demonstrates our commitment not only to sustainable development but also to ensuring that we exercise global best practice. The funding we have secured for this major project through our partnership with First Abu Dhabi Bank and Abu Dhabi Global Market is not only the first in global aviation but also one of the first in the Middle East region. It highlights our commitment to innovation, and Abu Dhabi’s capability to deliver it ended Adam Boukadida.