Abu Dhabi’s Etihad Airways plans transition Islamic bonds

Etihad Airways, wholly owned by the Abu Dhabi government, is planning to sell US dollar-denominated ‘transition’ sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed.

Proceeds of so-called transition bonds are used by companies to gradually switch to more environmentally sustainable operations.

Etihad has hired banks including HSBC, Standard Chartered, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank and Mashreq Bank to arrange investor calls ahead of the planned five-year deal, the document showed.