4th 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.

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.

Investors who have demonstrated interests and committed to investing in JAL Transition Bond. (As of May 17, 2024)

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.

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.

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.

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.

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.

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.

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