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
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the Second Party Opinion was granted a validity period of 24 months from the date of creation; however, it has since been revoked due to a policy revision by Sustainalytics.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)
- AICHICHITA AGRICULTURAL COOPERATIVE ASSOCIATION
- Aizu Syoko Shinkumi bank
- Akita Shinkin Bank
- AZUSA SEKKEI CO.,LTD.
- Asset Management One Co., Ltd.
- JA AWA
- Iizuka Shinkin Bank
- IBARAKI Prefectural Credit Federations of Agricultural Cooperatives
- ANGEL PARK CO.LTD
- The Osaka-kyoei Credit Cooperative
- The Gifu Shinkin Bank
- kyoei
- Kyoritsu Credit Cooporative
- The Kumamoto Shinkin Bank
- COSEL Co., LTD.
- THE SAIKYO BANK,LTD
- SHOWA SHINKIN BANK
- THE SUGAMO SHINKIN BANK
- SUMITOMO LIFE INSURANCE COMPANY
- 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.
- NAGASAKI MITSUBISHI CREDIT UNION
- THE NAGANO-KEN SHINKUMI BANK
- Nakanogou Credit Cooperative
- Niigata credit union
- Nissay Asset Management Corporation
- Banshu Shinkin Bank
- THE HIRATSUKA 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.
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.
Reporting
Allocation Reporting
We have already allocated all the net of proceeds from the transition bond to the eligible project.
Impact Reporting
We have identified the following environmental impacts in the period since the issue date.
*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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