Japan Airlines Co., Ltd.
Presentation Materials Regarding Bond-type Preferred Shares
Japan Airlines plans to issue bond-type preferred shares and intends to apply for listing on the Tokyo Stock Exchange Prime Market. Approximately five years of fixed dividends will be paid post-issuance, followed by variable dividends. These shares have no voting or conversion rights.
Key Figures
- Fixed dividends for about 5 years after issuance, then variable dividends (step-up 5%)
- No voting or conversion rights
- Long-term holding benefit of up to 700 LSP points (for holdings of 5,000 shares or more)
AI要約
Characteristics of Bond-type Preferred Shares
Bond-type preferred shares are shares under the Companies Act and are accounted for as an increase in shareholders’ equity. They do not have voting or conversion rights. Separate from common shares, they are planned to be listed on the Tokyo Stock Exchange Prime Market, intended to provide a broad range of investors with investment opportunities. The full issuance amount will be recorded as capital, with fixed dividends for approximately five years after issuance, followed by variable dividends.
Impact on Financial Indicators and Long-term Holding Benefits
Bond-type preferred shares suppress the impact on ROE and EPS related to common shares, and dividends and residual asset distributions take precedence over common shares. At issuance, they contribute to improving financial soundness, such as lowering the net D/E ratio. As a long-term holding benefit, LSP points will be accumulated based on the number of shares held continuously until three record dates for preferred shareholders at the end of the first fiscal year after issuance, aiming to expand JAL fans and enhance brand value.
