MOL concludes global commitment line agreement
Mitsui O.S.K. Lines, Ltd. announced that it concluded a commitment line agreement through a transition-linked loan with Sumitomo Mitsui Banking Corporation (President and CEO: Makoto Takashima; Head Office: Chiyoda-ku, Tokyo). This is Japan’s first global commitment line agreement using a transition-linked loan.
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 third such loan that MOL has procured, following previous financing arrangements for the LNG bunkering vessel Gas Vitality (Note 2) and the bulk carrier Shofu Maru (Note 3) equipped with the Wind Challenger, which converts wind power into propulsive force. It marks the first time MOL used this approach to procure funds not tied to a specific vessel.
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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 eligibility of the loan has been assessed in a third-party evaluation (Note 4) by “DNV Business Assurance Japan” to ensure that it complies with all 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.
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[MOL Group 5 Sustainability Issues]
The MOL Group will contribute to realizing a sustainable society by promoting responses to sustainability issues, which are identified as social issues that must be addressed as priorities through its business.
We anticipate this initiative to contribute to the realization of “Environment -Conservation of the marine and global environment-.”
Source: Mitsui O.S.K. Lines
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