MOL to issue shipping’s first blue bonds

Mitsui O.S.K. Lines, Ltd. (MOL) will issue ‘blue bonds’ through a public offering in Japan’s domestic market early next year.

A blue bond is a form of green bond that is issued to finance green initiatives that aim to tackle environmental issues. The revenues of the bond are confined to projects connected to marine pollution prevention, sustainable marine resources, and so on.

These represent the world’s first blue bonds in the shipping sector, referring to the International Capital Markets Association (ICMA) and other organisations’ recommendations.

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The bonds are intended to be issued in January 2024, with an issue amount of approximately JP¥ 10 billion ($70.54 million).

MOL explained that the Blue Bond Framework developed for the bonds’ issuance will ensure that all uses of the bonds’ proceeds contribute to a sustainable blue economy, and the bonds received the highest rating of ‘Blue1’ from the Japan Credit Rating Agency, Ltd. (JCR) based on its expectation of a positive environmental impact.

This month, MOL and DP World signed a Memorandum of Understanding (MoU) to investigate prospects to improve vehicle logistics capabilities at Jebel Ali Port and decrease carbon emissions in port and marine applications in the UAE and beyond.

Additionally, NYK Line signed a time charter contract with MOL for the transport of ammonia.