Mitsui O.S.K. Lines announced that it has decided to raise funds through a syndicated transition linked loan using the performance-based interest subsidy system based on Japan’s Act on Strengthening Industrial Competitiveness.
The Minister of Land, Infrastructure, Transport and Tourism approved MOL’s business adaptation plan on March 28. MOL is the first Japanese shipping company to make use of this system.
This loan is the seventh round of financing using the Sustainable Finance Framework MOL established in January of this year. The company will address environmental issues along with its stakeholders by continuously implementing sustainable finance and accelerating environmental investments based on this framework in future fundraising as well.
In addition, it obtained a second-party opinion on the eligibility of the Framework from DNV Business Assurance Japan K.K. (DNV) on December 22, 2023, to ensure the eligibility and transparency of the Framework.
The MOL Group has positioned environmental strategy as a key element of its group management plan “BLUE ACTION 2035” established last year, and has set “conservation for marine and global environment” as one of its Sustainability Issues (Materiality). The group is committed to solving environmental issues through co-creation with stakeholders with the aim of achieving “Net zero greenhouse gas (GHG) emissions by 2050.”
Earlier this year, Mitsui O.S.K. Lines (MOL) unveiled a sustainable finance framework aligned with its principles, drawing inspiration from the “Climate Transition Finance Handbook 2023” by the International Capital Markets Association (ICMA).
