JAL returns to transition bond market as sales inch higher
Japan Airlines is planning to return to the transition bond market, seeking cheaper funds as one of the few carriers issuing the debt in a market dominated by utilities. The Tokyo-based airline has hired banks to sell about 10b yen ($72m) of 10-year transition notes next week, according to underwriter Daiwa Securities Co. JAL last year undertook its debut sale of the debt designed to help companies in heavy-emitting industries become more energy efficient and reduce emissions. Transition bond deals have increased 47% so far this year to $2.1b after Air France-KLM priced the biggest such deal of 2023, in a market that has been led by Japanese and Chinese issuers. A lack of clear standards for sales of such debt, compared especially with green finance guidelines in Europe, has limited sales of transition bonds globally.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-06-07/oneworld/jal-returns-to-transition-bond-market-as-sales-inch-higher
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JAL returns to transition bond market as sales inch higher
Japan Airlines is planning to return to the transition bond market, seeking cheaper funds as one of the few carriers issuing the debt in a market dominated by utilities. The Tokyo-based airline has hired banks to sell about 10b yen ($72m) of 10-year transition notes next week, according to underwriter Daiwa Securities Co. JAL last year undertook its debut sale of the debt designed to help companies in heavy-emitting industries become more energy efficient and reduce emissions. Transition bond deals have increased 47% so far this year to $2.1b after Air France-KLM priced the biggest such deal of 2023, in a market that has been led by Japanese and Chinese issuers. A lack of clear standards for sales of such debt, compared especially with green finance guidelines in Europe, has limited sales of transition bonds globally.<br/>
