JAL reveals details of new debt issuance

Japan Airlines (JAL) plans to raise ¥300bn using a package comprising a term loan and subordinated loan and a hybrid bond issuance – collectively referred to as a hybrid finance package. JAL said that it was raising new funds to improve cash flow and further strengthen its financial position to accelerate its efforts toward further reforming its business plan and diversifying its revenue sources. JAL has opted for the hybrid finance for its intermediate nature between capital and liabilities, and since it is a liability, it does not dilute stocks, but it is a voluntary deferral of interest and is