Japan Airlines to raise up to $1.6b from share sale

Japan Airlines said on Friday that it planned to raise up to 168b yen ($1.6b) through a public offering, followed by a third-party allotment, in a bid to raise capital after the coronavirus pandemic has caused a huge drop in demand for air transport. Through its equity finance plan, in which the company will issue new shares, Japan Airlines aims to strengthen its financial position while also investing in more energy-efficient aircraft in preparation for when demand picks up again. The company will issue up to 100m new shares, accounting for 30% of its current outstanding stock of 337m shares. The public offering will be be open to Japanese as well as overseas investors. While 100b yen of the capital will be used for investments, the remaining Y68b will be used for the repayment of interest-bearing debt. The airline plans to spend Y80 on aircraft from Europe's Airbus, with more fuel-efficient planes that emit less carbon dioxide. It also plans to put 15 billion yen toward an investment and loan plan for the company's low-cost carrier arm, which is expected to see a rebound in demand when travel markets recover.<br/>