MOL Set To Launch World’s First Blue Bonds In January 2024

In January 2024, Mitsui O.S.K. Lines, Ltd. will launch a public offering of “blue bonds” on the Japanese domestic market. Per the International Capital Markets Association (abbreviated the ICMA) and other organizations’ recommendations (Note 1), the bonds are the first blue bonds in the history of the maritime sector.

Based on its expectations that the bonds will have a positive environmental impact, the Japan Credit Rating Agency, Ltd. (popular as the JCR) presented them with the highest rating of “Blue1(F)” (Note 2), and the bonds were issued under the Blue Bond Framework, which will guarantee that all uses of the proceeds will support a sustainable blue economy.

A blue bond is a kind of green bond that is only intended to be used for projects about sustainable marine resources, avoiding the occurrence of marine pollution and other related issues. Blue bonds are intended to fund green initiatives that address environmental issues.

Marine and global environmental conservation is one of MOL’s sustainability challenges (materiality), and the company has positioned its sustainable development strategy as a fundamental component of its group management plan, “BLUE ACTION 2035,” which was developed this year.

The corporation decided to invest 650 billion yen over three years, from FY2023 to FY2025, to address environmental challenges. Blue bonds will be used to raise money to pay for these projects.

Reference: Hellenic Shipping News

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