DUBAI (Reuters) – Etihad Airways is working on what would be its third financing transaction linked to sustainable investment considerations, the Abu Dhabi government-owned airline’s treasurer said on Wednesday.

ESG concerns have been growing in the Gulf oil-rich region. Borrowers are setting up ESG frameworks in order to shift to more sustainable economies, and capitalize on the global increase in sustainability awareness following the COVID-19 epidemic.

“We’re now working on what would be our third transaction in the space”, Daniel Tromans, group treasurer at Etihad said on Wednesday, without disclosing details other than to say announcements could be made in the next few weeks.

While addressing a panel about sustainability at the ACT Middle East Treasury Summit (an online event), he said so.

Etihad set up a Sustainable Development Financing Framework (100 million Euros, $1117.14 Million) in 2019 to finance the expansion and renovation of its “Etihad Eco-Residence”, which is a sustainably built apartment complex for cabin crew.

The Transition Finance Framework allows it to raise funds via loans, transition bonds or sukuk, or through private transactions.

You can use the proceeds of your debt sale under this framework to finance new generation aircraft, as well as research and development for sustainable aviation fuels.

It has pledged to zero net carbon emissions by 2050.

Etihad, which raised $600 million last year via Islamic bonds or “transition” suukuks (or Islamic bonds), was designed to enable companies to gradually transition to more sustainable operations.