From ACT Wiki
Climate change - transition - financing - Sharia-compliant finance - sukuk.
A transition sukuk is a Sharia-compliant financing instrument to enable an activity or business that is currently a large emitter of greenhouse gases, to:
- Reduce its emissions significantly
- In alignment with the Paris Agreement
- 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