JAL Sells $1.2 Billion Bonds Amid Trump Tariff Turbulence (1)

Japan Airlines Co. sold ¥178.9 billion ($1.2 billion) of perpetual bonds to partly finance the purchase of 90 aircrafts as a tourism boom propels arrivals into the country to new highs.

It’s JAL’s first-ever sale of perpetual bonds, according to data compiled by Bloomberg. Their subordinated ranking, meaning they will be repaid only after senior notes in case there is a credit event, pushed up its funding costs compared with senior debt.

The bonds are rated BBB+ by Japan Credit Rating Agency Ltd., three steps above junk grade. The offering is also aimed at enhancing the company’s capital adequacy ...