Japan Airlines (JAL) has issued its second transition bond. Proceeds from the ¥10bn unsecured ten-year bond issuance will be used to upgrade the airline’s fleet to fuel-efficient aircraft (Airbus A350, Boeing-787, etc.), and to refinancing existing investments.
In March 2022, JAL issued the world's first transition bond in the aviation industry and was the first in the Japanese aviation industry to be selected as a model case for the Ministry of Economy, Trade and Industry's "Climate Transition Finance Model Project". JAL has issued this second bond in accordance with the "Transition Bond Framework" formulated for the previous transition bond issuance. Click here for the Transition Bond Framework:
Daiwa, Mitsubishi UFJ Morgan Stanley Securities, Mizuho, BofA Securities Japan and Nomura are lead managers.
JAL says that it will continue to accelerate its efforts towards promoting transition in the air transport business and achieving ultimate decarbonisation through ESG finance. By upgrading to fuel-efficient aircraft, JAL says that it will accelerate efforts to achieve its CO2 reduction targets for fiscal years 2025 and 2030 (Less than fiscal year 2019,10% less compared to fiscal year 2019), the interim stages toward its overall target of net-zero emissions by 2050.
JAL has obtained a second party opinion from Sustainalytics, a third-party evaluation agency, stating that it conforms to various criteria related to transition bond issuance.
