Japan Airlines Co., Ltd.
Q&A on Bond-Type Preferred Shares
Explains a capital policy to issue the first series of bond-type preferred shares by the first half of fiscal 2026, potentially up to 200 billion yen, to raise growth investment funds without diluting common shares.
Key Figures
- Planned issuance amount: Up to 200 billion yen (during the first half of fiscal 2026)
- Preferred dividend annual rate: 5% or less (expected to step up after 5 years from issuance)
- Long-term holding benefit LSP points: Up to 700 points granted depending on continuous shareholding
AI要約
Purpose and Features of Bond-Type Preferred Shares
Based on the JAL Group Management Vision 2035, the company is considering issuing bond-type preferred shares to promote the purchase of new aircraft and growth investments in non-aviation sectors, aiming for stable and diversified external financing. This approach seeks to balance building a strong financial foundation and pursuing capital efficiency without diluting common shares, while facilitating engagement with a broad range of investors, contributing to long-term relationship building and enhancing brand value. Bond-type preferred shares have no voting rights and no conversion rights into common shares, thus causing no dilution of common shareholders’ rights.
Overview of Planned Issuance and Long-Term Holding Benefits
The first bond-type preferred shares may be issued up to 200 billion yen during the first half of fiscal 2026, with a preferred dividend annual rate assumed to be 5% or less. There is a possibility that JAL will call (repurchase) the shares approximately five years after issuance, at which time the dividend rate will step up. As a long-term holding benefit, individual shareholders will be granted Life Status Points (LSP) according to the number of shares continuously held until the end of March 2027, aiming to expand the JAL fan base and appeal to a wider range of investors.
