MOL establishes sustainable finance framework using it for 5 loan deals

January 29, 2024

Bulk carrier equipped with Wind Challenger

Part of Ongoing Environmental Strategy Initiative

Mitsui O.S.K. Lines, announced the establishment of a comprehensive Sustainable Finance Framework in line with its Key Principles including the “Climate Transition Finance Handbook 2023” of the International Capital Markets Association . The company has also obtained a second-party opinion from DNV Business Assurance Japan K.K., an international third-party certification organization, regarding its eligibility. The MOL can flexibly and continuously use this framework to raise funds through sustainable finance.

In addition, based on the Framework, the MOL Group has completed the signing of three Transition Loans (TL) and one Transition Linked Loan (TLL) financing agreement, as described below, and is scheduled to sign another TLL financing agreement as well.

Of the loans below, (1) and (2) have been selected by the Ministry of Economy, Trade and Industry (METI) as a 2023 Transition Finance Project .

LNG dual-fueled pure car and truck carrier (PCTC)

[Outline of Loans]

	(1)	(2)	(3)	(4)	(5)
Lender	Sumitomo Mitsui Banking Corporation	Sumitomo Mitsui Trust Bank, Limited	The Bank of Yokohama, Ltd.	The Bank of Yokohama, Ltd.	SBI Shinsei Bank, Ltd.
Contract Form	TL	TL	TL	TLL*	TLL*
Contract Signing Date	December 20, 2023	December 26, 2023	December 26, 2023	December 26, 2023	Late January to February 2024 (scheduled to be concluded)
Use of Funds	Construction of two LNG dual-fueled ferries	Construction of bulk carrier equipped with Wind Challenger	Construction of LNG dual-fueled pure car and truck carrier (PCTC)	Construction of LNG dual-fueled very large crude carrier (VLCC)	Construction of LNG dual-fueled very large gas carrier (VLGC)

* Transition-linked loans are a financing method that takes into account changes in loan characteristics (interest rates, etc.) based on the status of achievement of greenhouse gas (GHG) reduction targets that MOL has set (or will set) in advance.

The MOL Group has positioned environmental strategy as one of its major strategies and has set “marine and global environmental conservation” as one of sustainability issues (materiality) in the group management plan “BLUE ACTION 2035” formulated last year. We aim to achieve “Net zero GHG emissions by 2050” and will work collaboratively with our partners and stakeholders with creativity to resolve environmental issues. We will continue efforts toward sustainable finance by utilizing this framework in a funds procurement as well.