Go to the top of this page

3rd 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. 13th Series of Unsecured Corporate Bond
(with inter-bond pari passu clause; Transition Bond)
Maturity 10 years
Issue amount 65.0 billion yen
Timing of issue May 23rd, 2024
Coupon rate 1.634 % 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 May 17, 2024)

  • Asset Management One Co., Ltd.
  • BlackRock Japan Co., Ltd.
  • Chugoku Labour Bank
  • The Gibraltar Life Insurance Co., Ltd.
  • Hanno-Shinkin Bank
  • Kobeshi Shokuin Shinkumi Bank
  • Koto Shinkin Bank
  • The Kumamoto Shinkin Bank
  • Meiji Yasuda Asset Management Company Ltd.
  • Midori Life Insurance Co. , Ltd.
  • The Mishima Shinkin Bank
  • Mutual Aid Foundation for Japan Postal Group
  • Nissay Asset Management Corporation
  • Norinchukin Zenkyoren Asset Management Co., Ltd.
  • The Numazu Shinkin Bank
  • Ohkawa Shinkin Bank
  • The Prudential Gibraltar Financial Life Insurance Co., Ltd.
  • The Sawayaka Shinkin Bank
  • The Seto Shinkin Bank
  • Sumitomo Mitsui DS Asset Management Company, Limited
  • Tajima Agricultural Cooperative
  • Tokio Marine Asset Management Co., Ltd.
  • Tokushimashi Agricultural Cooperative
  • Tsuruga Shinkin Bank
  • The Yamaguchiken Credit Cooperative

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.


Allocation Reporting

JAL will report on the allocation of proceeds on JAL’s website annually until the proceeds have been fully allocated to Eligible Projects.
The report will include the aggregated amount of allocation of the proceeds to the Eligible Projects at category level, the amount of unallocated proceeds and the amount of proceeds used for refinancing.
JAL will report timely in the event of a significant change in the allocation 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 Bonds have been allocated.

Project Category Impact Metric
  • Upgrading to Fuel-efficient aircraft
  • Annual CO2 emissions avoided

Annual Review

Within one year from the date of issuance of the Transition Bonds, JAL will obtain a review from Sustainalytics, an independent external reviewer, to evaluate whether its reporting is aligned with this framework. This review will be conducted annually until the proceeds from the Transition Bonds have been fully allocated.

In order to view PDF documents, you will need to have the free Adobe ReaderOpen link in a new window software installed on your computer.

To Page top