TOKYO-Mitsui O.S.K. Lines (MOL) announced that it has decided to issue “blue bonds” through a public offering in Japan’s domestic market in January 2024.
The Blue Bond Framework, developed for the issuance of the bonds, will ensure that all uses of the bonds’ proceeds will contribute to a sustainable blue economy, and the bonds received the highest rating of “Blue1(F)” from the Japan Credit Rating Agency, Ltd. (JCR) based on its expectation that they will have a positive environmental impact.
A blue bond is a type of green bond issued to finance green projects that aim to solve environmental problems and is issued with the use of proceeds limited to projects related to the prevention of marine pollution, sustainable marine resources, and so on.
The bonds are the world’s first blue bonds in the shipping industry, which refer to the guidance provided by the International Capital Markets Association (ICMA) and other organizations.
| Serial number of bonds | 26th series unsecured corporate bonds |
| Maturity | 5 years |
| Issue amount | 10 billion yen (planned) |
| Issue date | Scheduled for January 2024 |
| Lead managers | Daiwa Securities Co., Ltd., Nomura Securities Co., Ltd., Mizuho Securities, Co., Ltd., Shinkin Securities Co., Ltd. |
| Blue bond structuring agent | Daiwa Securities Co., Ltd. (Note 3) |
To remind, also in a first-of-its-kind initiative, the Seychelles issued a blue bond in October 2018, where US$15m were directed exclusively towards sustainable ocean activities.
