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December 17, 2009

MOL Completes Settlement of the 13th Unsecured Bonds

TOKYO - Mitsui O.S.K. Lines, Ltd. (MOL, President: Akimitsu Ashida) today announced that the company determined the terms and conditions for the issuance of its 13th series of unsecured bonds (with inter-bond pari passu clause) on December 11, 2009, and completed the issuance and payment on December 17. The details are as follows:

1. Background and objectives for issuance of the 13th series domestic unsecured bonds (with inter-bond pari passu clause)

When raising funds to bolster business activities, MOL has been focusing on stability of fund procurement and cost competitiveness. Additionally, considering unpredictable financial market conditions since the "Lehman Shock" in 2008, we have carried forward diversification of procurement methods and lengthening and diversification of procurement period.. Based on this policy, we secured necessary funds by issuing a total of 85 billion yen in domestic straight corporate bonds within the most recent year - issuance of 50 billion yen in bonds (5-year bonds, 10-year bonds) in May 2009 and preceded by a 20 billion yen issue (7-year bonds), which followed the issuance of 15 billion yen (5-year bonds) in domestic straight bonds in December 2008. These issuances constitute the first series of bond issuances the bond issue in 1997.

With the increase in marine cargo trade, MOL has taken a proactive and appropriate fleet investment strategy which has resulted in enhanced profitability and financial strength.. These measures have enabled us to achieve the financial soundness necessary to operate our business even in the midst of the economic recession caused by the global financial crisis.

While maintaining the balance between increase in shareholders' equity derived from accumulated profits and appropriate level of interest-bearing debt, we will continue to raise funds as needed. In the near-term, we are not planning to raise proceeds through a public equity offering but through bank loans or debt issuance, our traditional methods of financing.

2. Details of the 13th Series Domestic Unsecured bonds

1. Total amount of issue :
20 billion yen
2. Coupon :
1.106% per annum
3. Issue price :
100 yen per face value of 100 yen
4. Payment date :
December 17, 2009
5. Redemption date :
December 16, 2016
6. Maturity :
7 years
7. Redemption method :
Bullet maturity amortization
8. Coupon payment date :
June 17 and December 17 every year
9. Use of funds :
The funds will be allocated for refunding and repaying loans and commercial paper (CP) used for vessel investment.
10. Lead Manger :
Mizuho Securities Co., Ltd. (coordinator)), Nomura Securities Co., Ltd., and Daiwa Securities SMBC Co., Ltd.
11. Fiscal agent :
Sumitomo Mitsui Banking Corporation
12. Ratings :
AA - (Rating and Investment Information Center, Inc.)
AA - (Japan Credit Rating Agency, Ltd.)

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