Please try another search
Economy3 hours ago (Sep 10, 2021 02:15AM ET)
© Reuters. FILE PHOTO: Japan Airlines (JAL) planes sit on the tarmac at New Chitose Airport, in Sapporo, Hokkaido, Japan May 4, 2021. REUTERS/Issei Kato
By Maki Shiraki and Jamie Freed
TOKYO (Reuters) – Japan Airlines Co Ltd (JAL) said on Friday it had finalised plans to issue 300 billion yen ($2.73 billion) of hybrid loans and subordinated bonds to give it a safety net and position it for a post-coronavirus business environment.
It will raise 200 billion yen from hybrid loans and 100 billion from subordinated bonds, the airline said in a statement to the stock exchange.
JAL had announced initial plans for the raising on Thursday but provided more details of the funding mix and uses on Friday.
“We would like to maintain our commitment line unused, as we believe it is the last-resort safety net,” JAL’s general manager of finance, Yuichiro Kito, told reporters. “We don’t want to be lamenting the unexpected.”
The airline last month forecast its cash burn rate to fall to around 5 billion yen a month in the second quarter ending Sept. 30 from 10 billion to 15 billion yen a month in the first quarter.
However, Kito said the severe COVID-19 situation in Japan meant the company was not certain it could meet the second-quarter cash burn target.
The airline said the proceeds from the raising would be used to introduce Airbus SE (OTC:) A350-1000s as its new flagship aircraft, helping it to reduce carbon emissions on international flights.
JAL will also renew its revenue management system for domestic routes and repay other debt with the raising’s proceeds, it added.
“This isn’t just about defense, this financing is also positioning ourselves to be aggressive in the post-coronavirus future,” Kito said.
($1 = 109.7400 yen)
Related Articles
China tells delivery, ride-hailing firms to better protect workers
By Reuters – Sep 10, 2021
SHANGHAI (Reuters) -Chinese government officials, in the latest show of regulatory vigour, told leading delivery and ride-hailing companies on Friday to improve how they…
New push needed to complete stalled EU banking union – Villeroy
By Reuters – Sep 10, 2021
PARIS (Reuters) – European efforts to build a more unified cross-border banking system have ground to a halt over opposition to deposit guarantee plans, France’s central bank head…
EU ministers want EU budget rules to support investment, realistic debt cuts
By Reuters – Sep 10, 2021
By Jan Strupczewski and Michael Nienaber BRDO, Slovenia (Reuters) – European Union finance ministers said on Friday that changes to EU budget rules, now under review, should…
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.