Citi and Etihad Sign Agreement for First Sustainable Deposit Solution

Published on: 25 July 2022
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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

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