- Region: Europe
- Marine and Aerospace
- Import Loans
- Guarantees
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a guarantee agreement (total principal covered by guarantee: approximately JPY26.5 billion) with private financial institutions*1 for the principal and interest of their transition-linked loans to Japan Airlines Co., Ltd. (JAL).
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This guarantee is intended to support JAL in obtaining financing from private financial institutions to import two aircraft from Airbus S.A.S. in France, thereby contributing toward maintaining and improving the international competitiveness of the Japanese aviation industry.
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In its Medium-term Management Plan for the fiscal years until 2025, JAL states that it will focus on its ESG strategy and will promote activities for reducing total CO2 emissions to virtually zero in 2050. Having recognized CO2 emissions from aircraft as a particularly substantial issue, JAL is proactive in replacing its aircraft with fuel-efficient ones.
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Transition-linked loans are a financial instrument where variable conditions, such as interest rate, apply depending on the borrower’s level of achievement toward a goal of CO2 emissions reduction. Utilizing this financial methodology in this loan from private financial institutions is expected to promote JAL’s efforts to achieve its goal of CO2 emissions reduction.
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As Japan’s policy-based financial institution, JBIC will continue to provide financial support for Japanese companies in their efforts to realize a decarbonized society and for the import of aircraft that are indispensable for the lives of the people in Japan, in collaboration with private financial institutions.
Note
- *1
MUFG Bank, Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, the Bank of Kyoto, Ltd., the Chiba Bank, Ltd., the Nishi-Nippon City Bank, Ltd., the Nanto Bank, Ltd.