Japan Airlines Co. said Friday it will raise around ¥300 billion ($2.7 billion) via a combination of subordinated loans and bonds to bolster its financial standing as the fallout from the coronavirus pandemic drags on.
The funds will also be used to introduce Airbus 350s that are considered more environmentally friendly and are expected to be the airline's primary aircraft for international flights, JAL said.
The major airline will take out subordinated loans worth around ¥200 billion from Japanese megabanks — MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corp. — along with the state-backed Development Bank of Japan. Around ¥100 billion will be raised by issuing subordinated bonds.