It turned out that Japan Airlines has entered into final adjustments in the direction of raising a large amount of funds of about 300 billion yen.
While aviation demand is sluggish due to the spread of the new corona infection, in addition to strengthening the financial base, it seems that the aim is to invest in growth in anticipation of the end of the infection.
According to the people concerned, Japan Airlines is adjusting to receive a loan of about 200 billion yen from three mega banks and the Development Bank of Japan, a government-affiliated financial institution, in the form of a "subordinated loan", part of which is regarded as capital.
We are also considering issuing new corporate bonds, and the total amount raised is expected to be about 300 billion yen, which is a large-scale financing.
Due to the impact of the new coronavirus, Japan Airlines posted a final deficit of more than 280 billion yen last year for the entire group.
Due to the spread of the infection, aviation demand has continued to be sluggish.
In addition to strengthening its financial base by raising new funds, the company is expected to aim to strengthen its business in growth fields such as low-cost carriers and to respond to decarbonization in anticipation of the end of the infection.
In the aviation industry, Skymark is also trying to strengthen its financial base with subordinated loans due to Corona.