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1st Transition Bond

The JAL Group is aiming to achieve its target of net-zero CO2 emissions by 2050, primarily by upgrading its aircraft to fuel-efficient models that emit minimal CO2, and increasing the load amount of Sustainable Aviation Fuel (SAF).
When planning to issue SDG Bonds, JAL decided to issue Transition Bonds that the net proceeds will be allocated to upgrading to fuel-efficient aircraft.

Summary of Transition Bonds

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Name Japan Airlines Co., Ltd. 11th Series of Unsecured Corporate Bond
(with inter-bond pari passu clause; Transition Bond)
Maturity 5 years
Issue amount 10.0 billion yen
Timing of issue March 1st, 2022
Coupon rate 0.70% per annum
Use of proceeds Upgrading to fuel-efficient aircraft (Airbus A350, Boeing-787, etc.)
External review provider Sustainalytics
Bond ratings A- (Rating and Investment Information, Inc.), A (Japan Credit Rating Agency, Ltd.)

Second Party Opinion

JAL has developed the Transition Bond Framework (hereinafter, "this framework"). This framework has obtained a second party opinion from Sustainalytics as an independent external reviewer that this framework is aligned with the Green Bond Principles 2021 (ICMA), Green Bond Guidelines 2020 (Ministry of the Environment, Japan), Climate Transition Finance Handbook 2020 (ICMA), and Basic Guidelines on Climate Transition Finance (May 2021) (Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment, Japan).

* Originally, the Second Party Opinion was granted a validity period of 24 months from the date of creation; however, it has since been revoked due to a policy revision by Sustainalytics. It is important to note that the aforementioned policy change has no impact on the evaluation content or the reliability of the Second Party Opinion.

Selection of Climate Transition Finance Model Projects

The issuance has been selected as the first model example in Japan's Aviation Industry for the 2021 Climate Transition Finance Model Projects by Ministry of Economy, Trade and Industry of Japan.

List of investors announcing investment in the bonds

Investors who have demonstrated interests and committed to investing in JAL Transition Bond. (As of February 22, 2022)

  • Aizu Syoko Shinkumi bank
  • Akita Shinkin Bank
  • Asset Management One Co., Ltd.
  • JA AWA
  • Iizuka Shinkin Bank
  • IBARAKI Prefectural Credit Federations of Agricultural Cooperatives
  • The Osaka-kyoei Credit Cooperative
  • The Gifu Shinkin Bank
  • kyoei
  • Kyoritsu Credit Cooporative
  • The Kumamoto Shinkin Bank
  • COSEL Co., LTD.
  • Sompo Asset Management Co., Ltd.
  • Choshi Shoko Shinkumi Bank
  • General Incorporated Foundation Tsuyama Jifu Kai
  • Touto sinyo nogyo kyodo kumiai
  • Dokkyo University
  • The First Bank of Toyama,Ltd.
  • Nakanogou Credit Cooperative
  • Niigata credit union
  • Nissay Asset Management Corporation
  • Banshu Shinkin Bank
  • Hokkaido Labor Bank
  • Mie Prefecture credit federation
    of agricultural cooperatives
  • Mienaka Japan Agricultural Cooperatives
  • The Mizusawa Shinkin Bank
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.

Summary of Transition Bond Framework

1.Use of Proceeds

JAL will use the proceeds of the Transition Bonds to finance and refinance new and existing Eligible Projects falling within the following project category. In the case of existing investments, allocation is limited to expenditures made within three years before the issuance of the Transition Bonds.

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Project Category Eligibility Criteria SDGs
  • Upgrading to Fuel-efficient aircraft
  • Green Bond Principles:
  • Clean transportation
    (Environmental objectives: Climate change mitigation)
  • "Targets and Initiatives towards CO2 emmission reduction by 2030":
    Upgrading to fuel-efficient aircraft (Airbus A350, Boeing-787, etc.)
  • 7.Ensure access to affordable, reliable, sustainable and modem energy for all
  • 9.Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  • 13.Take urgent action to combat climate change and its impacts

2.Process for Project Evaluation and Selection

JAL's Finance Department will negotiate with related business departments and select nominated Eligible Projects. General Manager of Finance & Accounting Division will be responsible to select the Eligible Projects on behalf of the Board.

Eligibility assessments are done 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.

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 Bonds have been fully allocated. The proceeds will be managed in cash or cash equivalents until the net proceeds from the Transition Bonds have been fully allocated.


Allocation Reporting

We have already allocated all the net of proceeds from the transition bond to the eligible project.

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(Project Category :Upgrading to fuel-efficient aircraft)
The amount of allocation of the proceeds 9.9 billion JPY
The amount of unallocated proceeds 0 billion JPY
The amount of proceeds used for existing investments 0 billion JPY

Impact Reporting

We have identified the following environmental impacts in the period since the issue date.

Project Category Impact Metric
  • Upgrading to Fuel-efficient aircraft
  • Annual CO2 emissions reduced
  • 94  (1,000 ton-CO2)*
  • (reduction of 18% compared to conventional aircraft)

*The reporting covers the period from March 2022 to November 2022.
*This figure is a theoretical value based on calculations from A350-900(16 aircraft) introduced on domestic flights.

Annual Review

We have obtained a review from Sustainalytics, an independent external reviewer, to evaluate whether its reporting is aligned with our framework .

Note: This website has been prepared for the purpose of publicly announcing JAL's issuance of Transition Bonds, and not for the purpose of soliciting investment or engaging in any other similar activities.

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