MOL to Become World's 1st Shipping Company to Issue Blue Bonds

December 15, 2023

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that it has decided to issue "blue bonds" through a public offering in Japan's domestic market in January 2024.
The bonds are the world's first blue bonds in the shipping industry, which refer to the guidance (Note 1) provided by the International Capital Markets Association (ICMA) and other organizations. 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)" (Note 2) 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.
MOL has positioned its environmental strategy as a key element of its group management plan "BLUE ACTION 2035," established this year, and set "marine and global environmental conservation" as one of its sustainability issues (materiality). The company set a total of 650 billion yen to be invested in resolving environmental issues over the three-year period from FY2023 to FY2025. It will raise funds through blue bonds to finance these initiatives.

[Outline of Blue Bonds]

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)

(Note 1)
International Practitioner Guidance on Blue Bonds developed by the International Capital Market Association (ICMA), International Finance Corporation (IFC), United Nations Environment Programme - Finance Initiative (UNEP FI), UN Global Compact, and Asian Development Bank (ADB).

(Note 2)
MOL asked JCR to evaluate the framework to ensure its eligibility and transparency and to improve its appeal to investors. On December 15, 2023, it acquired a "Blue 1 (F)" rating, the highest rating in the "JCR Blue Bond Framework Evaluation."

(Note 3)
Parties providing support for the issuance of blue bonds by advising on the development of the Blue Bond Framework and the acquisition of third-party valuations.

[Blue Bond Framework]
https://www.mol.co.jp/en/sustainability/management/finance/pdf/blue_bond_framework.pdf
[JCR Blue Bond Framework evaluation]
JCR Blue Bond Framework evaluation

MOL develops various social infrastructure businesses centering on ocean shipping, technologies, and services to meet ever-changing social needs including environmental protection. In the area of environmental conservation, it has established the "MOL Group Environmental Vision 2.2" to pursue the reduction of greenhouse gas (GHG) emissions by the company and society through group-wide concerted efforts.

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This press release has been prepared for the sole purpose of publicly announcing information regarding MOL"s issuance of the bonds and not the purpose of soliciting investment or engaging in any other similar activities within or outside Japan.

MOL Group 5 Sustainability Issues
MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision.We anticipate this initiative to contribute especially to the realization of "Environment -Conservation for Marine and global environment-".