Asian Tech Press (SEP 10) -- Japan Airlines Co Ltd (JAL) has officially announced that it will raise 300 billion yen (US$2.73 billion) from September, according to Kyodo News. The airline said it will raise 200 billion yen from hybrid loans and 100 billion from subordinated bonds in a statement to the stock exchange.

JAL will invest in the company's development, including aircraft purchase, while strengthening its financial base with additional funds on hand as the business situation continues to be critical due to the prolongation of the Covid-19 epidemic.

The hybrid loans will be issued by MUFG Bank, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and the Development Bank of Japan. The subordinated bonds will be issued through a public call.

JAL will use the funds to purchase new aircraft such as the Airbus A350, which has better environmental performance than previous models.

JAL's general manager of finance, Yuichiro Kito, said: "We would like to maintain our commitment line unused, as we believe it is the last-resort safety net. We don't want to be lamenting the unexpected."