Etihad Airways has raised 100 million euros to support the expansion of its eco residence in Abu Dhabi, a sustainable residential complex for the airline’s cabin crew.
In doing so, the national carrier of the United Arab Emirates has become the first airline to secure funding for a project based on the UN’s Sustainable Development Goals, the company said Sunday.
First Abu Dhabi Bank and Abu Dhabi Global Market will finance the project.
“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,” said Adam Boukadida, senior vice-president, treasury, tax and finance at Etihad Aviation Group.
He said the process to secure the loan hinged on a detailed international verification of the airline’s sustainability credentials.
“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.”
Financing for these type projects must be linked to one or more of the goals, and the Etihad project met two, the company said.
To support the financing, Etihad established a framework.
The airline then engaged Sustainalytics to review the framework, and confirm alignment with the Sustainability Bond Principles of the International Capital Markets Association.
The company issued a Second Party Opinion verifying Etihad’s sustainability credentials, a key condition to raising capital, Etihad said.
Images are courtesy of Etihad.