2nd Trasition Linked Loan
In addition to Transition Bonds, JAL established the Framework of Transition Loan and Transition Linked Loan, and decided to arrange the Transition Linked Loan. The JAL Group will continue to contribute to the sustainable society through our ESG strategy.
Summary of Transition Linked Loan
Second Party Opinion
Prior to execution of Transition Linked Loan, Transition Loan and Transition Linked Loan Framework was established, in accordance with ICMA "Climate Transition Finance Handbook 2020", Financial Services Agency; Ministry of Economy, Trade and Industry; and Ministry of the Environment, "Japan Basic Guidelines on Climate Transition Finance May 2021",LMA "Sustainability-Linked Loan Principles 2021" and "Green Loan Principle 2021", and Ministry of the Environment "Green Loan and Sustainability-Linked Loan Guidelines 2022".This framework obtained a second party opinion from Japan Credit Research Agency, Ltd. (JCR).
Summary of Transition Loan and Transition Linked Loan Framework
1.Selection of KPI
2.SPTs
3.Characteristics of the Loan
The condition of the loan will be changed depending on the achievement of the SPTs. The details will be specifically stated in the loan agreements of each Transition Linked Loan executed based on this Framework.
The achievement status of SPTs will be determined in 2026 and/or 2031 and the date of determination will be specified in the loan agreement at the time of the execution of each financing. If the SPTs have been achieved at the determination date, the interest rate will be stepped down from each interest calculation period after the determination date to the next determination date.
4-1.Use of Proceeds
4-2.Process for Project Evaluation and Selection
JAL’s Finance Department will consult with the related business departments and select eligible projects for each financing. Executive Officer of Finance & Accounting Division will be responsible to select the eligible projects on behalf of the Board.
Eligibility assessments are executed in a comprehensive manner based on the Eligibility Criteria. In addition, in the operation and implementation of the project, JAL is working on the conservation of the surrounding environment in each related department.
4-3.Management of Proceeds
JAL's Finance Department will manage the allocation of the proceeds annually using the internal management system until the net proceeds from the Transition Linked Loan (specifying the use of proceeds) or Transition Loan have been fully allocated. The proceeds will be managed in cash or cash equivalents until the net proceeds from the Transition Linked Loan (specifying the use of proceeds) or Transition Loan have been fully allocated.
Reporting
KPI・SPTs
Management of Proceeds
Impact Reporting
Where possible, JAL will report on the following impact metric and the outlines of eligible projects on JAL's website, until the proceeds from the Transition Linked Loan (specifying the use of proceeds) or Transition Loans have been fully allocated.
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