MOL Expands Financing Base through Transition Linked Loan to Promote Environmental Strategies
Mitsui O.S.K. Lines, Ltd. announced that it concluded a “global credit facility agreement” (also known as a “commitment line contract)through a transition-linked loan with MUFG Bank, Ltd. (President and CEO: Junichi Hanzawa; Head Office: Chiyoda-ku, Tokyo).
This loan is a financial instrument designed to assist companies that are taking action on climate change and are committed to reducing greenhouse gas (GHG) emissions in accordance with a long-term strategy to achieve a decarbonized society. This is the fourth such loan that MOL has procured, following previous financing arrangements for the LNG bunkering vessel Gas Vitality , the bulk carrier Shofu Maru equipped with the Wind Challenger, which converts wind power into propulsive force, and the “global commitment line contract” . It marks the second case in which MOL has used this approach to procure funds not tied to a specific vessel, following the “global commitment line contract.”
MOL has established a transition finance framework that sets sustainability performance targets for the goals set forth in “the MOL Group Environmental Vision 2.1,” The company’s eligibility for the loan has been assessed in a third-party evaluation by DNV Business Assurance Japan” to ensure that it complies with the following standards: (1) the Climate Transition Finance Handbook published by the International Capital Markets Association (ICMA); (2) the Basic Guidelines on Climate Transition Finance published by the Financial Services Agency, Ministry of Economy, Trade and Industry, and Ministry of the Environment; (3) the Sustainability Linked Loan Principles published by the Loan Market Association International (LMA) and others; and (4) the Sustainability Linked Loan Guidelines published by Japan’s Ministry of the Environment.
The MOL Group has set a goal of achieving net zero emissions by 2050. Through this loan, the group will carry forward its environmental strategy from the aspect of financing and contribute to the realization of a low-carbon/decarbonized society through concerted group-wide efforts.
[Outline of the loan]
|Date of signing||March 27, 2023|
|Term of agreement||Five years|
|Form of the loan||Commitment line|
|Maximum loan amount||US$500 million|
|Use of funds||Business capital|
We anticipate this initiative to contribute to the realization of “Environment -Conservation of the marine and global environment-.”
Source: Mitsui O.S.K.Lines