Abu Dhabi – Etihad Airways has become the first client to sign on to Citi ADGM's Sustainable Deposit Solution. Citi's newly launched deposit solutions will further assist the airline in investing excess cash as part of its sustainability agenda.
Etihad will have access to Citi's two new deposit solutions – Sustainable Time Deposit (TD) and Sustainable Minimum Maturity Time Deposits (MMTD) – which deliver competitive yields and are based on Citi's green and social bond frameworks, supporting the UN's Sustainable Development Goals (SDGs).
Elissar Antonios, Citi UAE CEO and MENA Cluster Head, Citi said: "We are delighted topartner 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 in 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."
Funds invested into the deposits are allocated to finance or refinance assets in a portfolio of eligible green and/or social finance projects. Allocation is based on the criteria set out in the Citi Green Bond Framework, Social Finance Framework and Social Bond for Affordable Housing Framework.
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 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, water quality as well as social friendly projects like expansion of access to low-income communities in emerging markets, 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 align with the International Capital Market Association's Green Bond Principles and Social Bond Principles and have been assessed by a leading independent ESG and corporate governance research, ratings, and analytics firm.
Over the past few years, Etihad Airways has raised US$1.2 billion in the first sustainability-linked loan (SLL) tied to environmental, social and governance (ESG) targets in global aviation. This followed a first-of-a-kind sustainability-linked transition sukuk in 2020 and a loan tied to the UN SDGs in 2019.
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
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Etihad Airways, the national airline of the UAE, was formed in 2003 and quickly went on to become one of the world's leading airlines. From its home in Abu Dhabi, Etihad flies to passenger and cargo destinations in the Middle East, Africa, Europe, Asia, Australia and North America. Together with Etihad's codeshare partners, Etihad's network offers access to hundreds of international destinations. In recent years, Etihad has received numerous awards for its superior service and products, cargo offering, loyalty programme and more. Etihad is recognised as one of the world's leading airlines in response to COVID-19 and was the first airline in the world to fully vaccinate its crew on board. Etihad sees tackling the climate crisis as the most important issue of our time, and through strategic partnerships with major global aviation brands and OEMs, Etihad is relentless in its pursuit of industry decarbonisation. To learn more, visit etihad.com.
About Citi's Treasury and Trade Solutions
Citi Treasury and Trade Solutions (TTS) enables our clients' success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe. Based on the foundation of the industry's largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continues to lead the way in offering the industry's most comprehensive range of digitally enabled treasury, trade and liquidity management solutions.