Citi and Etihad Sign Agreement for First Sustainable Deposit Solution

Published on:
by KnowESG,

Citigroup Inc

KnowESG_Sustainable_finance
Picture of Citi and Etihad signing agreement for first sustainable deposit solution

Etihad Airways has joined Citi ADGM's Sustainable Deposit Solution as the first client. Citi's newly introduced deposit solutions will let the airline invest extra cash as part of its sustainability initiative.

Etihad will have access to Citi's two new deposit solutions, Sustainable Time Deposit (TD) and Sustainable Minimum Maturity Time Deposits (MMTD), which offer competitive returns and are based on Citi's green and social bond frameworks, which promote the United Nations' Sustainable Development Goals (SDGs).

Elissar Antonios, Citi UAE CEO and MENA Cluster Head, Citi said: 

“We are delighted to partner with Etihad Airways as our first client to deposit funds in Citi’s ADGM Sustainable Deposit Solution and explore new and innovative ways to support their sustainability objectives. Our new series of deposit solutions reflect Citi Leadership’s commitment to helping our clients advance ESG KPIs in their treasuries through a range of sustainable solutions.”

Adam Boukadida, Chief Financial Officer of Etihad Aviation Group said: 

“Etihad is committed to sustainability at every touchpoint across our business, from decarbonising our operations through the Greenliner and Sustainable50 programmes to launching the Etihad Mangroves initiative and rewarding our guests through the Conscious Choices loyalty programme. Our finance team is always looking for opportunities to develop innovative sustainable financing solutions and we are very proud to continue our strategic partnership with ADGM and Citibank on this initiative.”

Deposit funds are used to finance or refinance assets in a portfolio of qualifying green and/or social finance projects. The criteria outlined in the Citi Green Bond Framework, Social Finance Framework, and Social Bond for Affordable Housing Framework are used to allocate funds.

Daniel Tromans, Group Treasurer of Etihad Aviation Group noted: 

“As a leader in sustainable aviation finance, we are delighted to be the first corporate to deposit funds in Citi ADGM’s Sustainable Deposit. This is the latest of many sustainable finance solutions we have implemented over the last four years and another clear signal of our commitment to sustainability.” 

Vani Rao, Liquidity Management Services Head for the Middle East and North Africa, Citi added: 

“We are pleased to bring such innovative ESG solutions to our flagship branch Abu Dhabi Global Markets (ADGM). Given our robust frameworks, Citi would be financing or refinancing environmentally friendly projects such as renewable energy, sustainable transportation, and water quality as well as social-friendly projects like the expansion of access to low-income communities in emerging markets, and affordable housing to name a few. We are excited that Etihad is our first client to partner with us on this important journey”.

Citi's Frameworks are consistent with the International Capital Market Association's Green Bond Principles and Social Bond Principles, and they have been evaluated by a major independent ESG and corporate governance research, rating, and analytics firm.

Etihad Airways has raised US$1.2 billion in the first sustainability-linked loan (SLL) aligned to environmental, social, and governance (ESG) standards in global aviation over the last few years. This follows a first-of-its-kind sustainability-linked transition sukuk in 2020 and a loan attached to the UN Sustainable Development Goals in 2019.

Source: Zawya

For more sustainable finance news

Share:
esg
esg
esg
esg

Sustainable Finance Headlines

Mizuho, UNDP Partner to Advance Impact Initiatives in Asia

Mizuho, UNDP Partner to Advance Impact Initiatives in Asia

Standard Chartered's Innovative Sustainable Financing Option

Standard Chartered's Innovative Sustainable Financing Option

CDPQ, Nuveen Team Up for Sustainable Financing in Real Estate

Asian Countries Vary in Classifying Sustainable Finance

Octopus Energy Pumps In £2B For Green Projects in UK

Verra and Citi Sign MOU to Advance Climate Market Solutions

Prudential Launches Climate Transition Financing Framework

Path to Net-Zero Emissions in Air Transport by 2050

Temasek Allocates S$100M for Climate Action Initiatives

ESG Krediet Supporting Green Financing in The Netherlands

More from Citigroup Inc
Citi UAE Launches Recycled Plastic Corporate Cards
Citi UAE Launches Recycled Plastic Corporate Cards
Highlights from Asia Pacific's Biggest Gathering of Young Social Entrepreneurs Climate Change
Highlights from Asia Pacific's Biggest Gathering of Young Social Entrepreneurs Climate Change
Citi hires veteran-owned firms to manage $2.0 billion bond issue
Citi hires veteran-owned firms to manage $2.0 billion bond issue
Citigroup introduces new deposit products for sustainable goals
Citigroup introduces new deposit products for sustainable goals