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2nd 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

This table can be scrolled horizontally.
Name Japan Airlines Co., Ltd. 12th Series of Unsecured Corporate Bond
(with inter-bond pari passu clause; Transition Bond)
Maturity 10 years
Issue amount 20.0 billion yen
Timing of issue June 19th, 2023
Coupon rate 1.20 % 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.

List of investors announcing investment in the bonds

Investors who have demonstrated interests and committed to investing in JAL Transition Bond. (As of June 13, 2023)

  • JA Aichikita
  • JA Aichi Toyota
  • AKITA SHINKIN BANK
  • Azabu University
  • The Ashikaga Bank, Ltd.
  • Asset Management One Co., Ltd.
  • Iizuka Shinkin Bank
  • Ohkawa Shinkin Bank
  • OSAKA Police Credit Union.
  • JA BANK OSAKA SHINREN
  • Kanumasogo Shinkin Bank
  • The Kumamoto Shinkin Bank
  • KONAN WOMEN'S ACADEMY
  • Kobeshi Shokuin Shinkumi Bank
  • Koriyama Shinkin
  • JA Sagamiharashi
  • The Sawayaka Shinkin Bank
  • SUMITOMO LIFE INSURANCE COMPANY
  • Seikyo shinkumi
  • NATIONAL MUTUAL INSURANCE FEDERATION OF FISHERY CO-OPERATIVES
  • DAIDO SHINYOUKUMIAI
  • Takaoka Shinkin Bank
  • TAKAMATSU SHINKIN BANK
  • JA TAKIGUN
  • Tajima Agricultural Cooperative
  • THE CHOSHI SHINKIN BANK
  • Tokushimashi Agricultural Cooperative
  • JA TOTTORICHUOU
  • Tonegun Shinkin Bank
  • Nagasaki-ken Medical Credit Cooperative
  • Nagano Prefectural Credit Federation of Agricultural Cooperative
  • Nagoya Broadcasting Network Co., Ltd.
  • NASUMINAMI NOUGYOUKYOUDOUKUMIAI
  • Nara Agricultural Cooperatives
  • Niigata Shinkin Bank
  • THE NISSHIN SHINKIN BANK
  • Nissay Asset Management Corporation
  • Numazu Shinkin Bank
  • Banshu Shinkin Bank
  • Hanno Shinkin Bank
  • Hyogo Shinkin Bank
  • HIROSHIMASHOGIN shinyoukumiai
  • JA FUKUOKASHI
  • FukuokaShinkin Bank
  • FUKUOKAHIBIKI SHINKIN BANK
  • Fukoku Mutual Life Insurance Company
  • The Prudential Life Insurance Company, Ltd.
  • JA BeppuHiji
  • MATSUMOTO SHINKIN BANK
  • THE MISHIMA SHINKIN BANK
  • Sumitomo Mitsui DS Asset Management Company, Limited
  • Sumitomo Mitsui Trust Asset Management Co., Ltd.
  • MIYAZAKI PREFECTURAL CREDIT FEDERATION OF AGRICULTURAL CO-OPERATIVES
  • Meiji Yasuda Asset Management Company Ltd.
  • Mutual Aid Foundation for Japan Postal Group
  • RUMOI Shinkin Bank

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.

This table can be scrolled horizontally.
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.

Reporting

Allocation Reporting

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

This table can be scrolled horizontally.
(Project Category :Upgrading to fuel-efficient aircraft)
The amount of allocation of the proceeds 19.8 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 avoided
  • 72  (1,000 ton-CO2)*
  • (reduction of 16% compared to conventional aircraft)

*The reporting covers the period from June 2023 to December 2023.
*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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