MOL Expands Financing Base Through Transition Linked Loan To Promote Environmental Strategies

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that it concluded a “global credit facility agreement” (also known as a “commitment line contract)) (Note 1) 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 (Note 2), the bulk carrier Shofu Maru (Note 3) equipped with the Wind Challenger, which converts wind power into propulsive force, and the “global commitment line contract” (Note 4). 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 (Note 5) 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.

Reference: Mitsui O.S.K. Lines

MOL Expands Financing Base Through Transition Linked Loan To Promote Environmental Strategies appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News