Sustainability linked financing

Sustainability - ESG - financing - bonds - loans - sukuks.

Any type of financing for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability / ESG objectives.

Sustainability financing may include sustainability-linked bonds, sustainability linked loans, and sustainability linked sukuks.

Aviation's first transition sukuk

"Judges also praised the aviation sector’s first-ever sustainability linked financing – which also happened to be wrapped up in the industry’s first-ever transition sukuk.

Raising $600m and securing the $300m early repayment of a 2021 debt maturity, Etihad’s deal is supporting the firm’s efforts in three emissions-reduction work streams: (1) sustainable aviation fuels, (2) voluntary carbon offsets and (3) operational efficiencies.

Last year, the airline operated four flights using synthetic fuels."

ACT Deals of the Year Awards 2020 - highly commended - Etihad Airways.

See also

• Corporate social responsibility
• Green Bond Principles (GBP)
• Environmental, social and governance (ESG)
• Green bond
• International Capital Market Association (ICMA)
• Key performance indicator
• Loan Market Association
• Social bond
• Social impact bond
• Sukuk
• Sustainability
• Sustainability bond
• Sustainability Bond Guidelines (SBP)
• Sustainability-linked bond
• Sustainability-Linked Bond Principles (SLBP)
• Sustainability linked loan
• Sustainability-Linked Loan Principles (SLLP)
• Sustainability performance target
• Transition sukuk
• Use of proceeds bond

Other resource

• Sustainability-Linked Bond Principles, ICMA - June 2024