Japan Airlines Co.,Ltd. [9201.T]
TOKYO, Apr 30 (Pulse News Wire) – Japan Airlines CO.,LTD. (9201.T) resolved to issue its first hybrid bond-equity security during a board meeting held today.
The move aims to raise growth capital without diluting existing shareholders while enhancing capital efficiency. The issuance will also lead to a reduction in capital stock and reserve fund balances equivalent to the increase in capital resulting from the issuance, which will be transferred entirely to additional paid-in capital. The airline plans to offer a unique hybrid security that combines features of bonds and equity. It includes fixed dividend payments for five years followed by variable dividends, non-participating nature relative to common shares, and no conversion rights into ordinary shares.
Additionally, the company will introduce long-term holding incentives for individual investors who hold the securities for extended periods. Historically, Japan Airlines' earnings before interest and taxes (EBIT) from full-service carriers accounted for approximately 30%, but through strategic investments in low-cost carriers (LCCs), miles/financial-commerce, and other areas, this ratio has improved significantly. The company envisions further transformation towards a balanced revenue structure across various sectors. In conjunction with the issuance, Japan Airlines released supplementary documents including an explanatory brochure and Q&A session materials to ensure transparency and understanding among potential investors.
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