Mitsui OSK Lines announced on Friday that it will issue blue bonds — the first to be issued in the shipping industry — through a public offering in the Japanese domestic market in January.
The company plans to issue a total of ¥10bn ($70m) with a five-year maturity.
Blue bonds are green bonds that are designated to finance projects that contribute to ocean health.
MOL’s bonds are the world’s first blue bonds in the shipping industry, the Tokyo-based company said in an emailed statement. The designation aligns with the guidelines established by the International Capital Market Association and other organisations.
The bonds received the highest rating of Blue1(F) from the Japan Credit Rating Agency based on its expectation that they will have a positive environmental impact.
The proceeds of the bond issue may be used for financing projects such as offshore wind power generation, ocean thermal energy conversion and wind sailing vessels, according to the firm’s blue bond framework.
Daiwa Securities, Nomura Securities, Mizuho Securities and Shinkin Securities are the lead managers on the transaction, while Daiwa is the blue bond structuring agent.
MOL has made environmental strategy a key element of its group management plan called Blue Action 2035, which was established in March.
It has set “marine and global environmental conservation” as one of its sustainability issues.
The company set a total of ¥650bn to be invested in resolving environmental issues from the fiscal year of 2023 to 2025.
It plans to raise funds through blue bonds to finance these initiatives.
MOL has established key performance indicators and milestones to measure progress on actions aimed at achieving net zero emissions by 2050.
