Sustainability linked financing

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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

External link

Sustainability Linked Bond Principles, ICMA