Mitsui O S K Lines : 2024/04/25 MOL Is 1st Japanese Shipping Company to Raise Funds through Transition Linked Loan Using Performance-based Interest Subsidy System - Accelerating Environmental Investment to Achieve Net-zero GHG Emissions by 2050

April 25, 2024

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that it has decided to raise funds through a syndicated transition linked loan(Note 1) using the performance-based interest subsidy system(Note 2) based on Japan's Act on Strengthening Industrial Competitiveness. The Minister of Land, Infrastructure, Transport and Tourism approved MOL's business adaptation plan on March 28. MOL is the first Japanese shipping company to make use of this system.

This loan is the seventh round of financing (Note 3) using the Sustainable Finance Framework MOL established in January of this year. The company will address environmental issues along with its stakeholders by continuously implementing sustainable finance and accelerating environmental investments based on this framework in future fundraising as well. In addition, it obtained a second-party opinion on the eligibility of the Framework from DNV Business Assurance Japan K.K. ("DNV") on December 22, 2023, to ensure the eligibility and transparency of the Framework.

The MOL Group has positioned environmental strategy as a key element of its group management plan "BLUE ACTION 2035" established last year, and has set "conservation for marine and global environment" as one of its Sustainability Issues (Materiality). The group is committed to solving environmental issues through co-creation with stakeholders with the aim of achieving "Net zero greenhouse gas (GHG) emissions by 2050."

[Outline of Syndicated Transition Linked Loan]

Borrower	Mitsui O.S.K. Lines, Ltd.
Date of siging	April 25, 2024
Arrangers	Sumitomo Mitsui Trust Bank, Limited Development Bank of Japan Inc., and SBI Shinsei Bank, Limited
Agency	Sumitomo Mitsui Trust Bank, Limited
Lenders	The Senshu Ikeda Bank, Ltd., The Juhachi-Shinwa Bank, Ltd., The Joyo Bank, Ltd., Sumitomo Life Insurance Company, The Toho Bank, Ltd., The Development Bank of Japan Inc., The Hachijuni Bank, Ltd., North Pacific Bank, Ltd., The Hokuriku Bank, Ltd., The Hokkaido Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, The Musashino Bank, Ltd., Resona Bank, Limited, SBI Shinsei Bank, Limited
Form of loan	Transition linked loan
Third-party assessment organization for transition certification	DNV

(Note 1) Transition-linked loans are a financing method that takes into account changes in loan characteristics (interest rates, etc.) based on the status of achievement of GHG reduction targets that MOL has set (or will set) in advance.

(Note 2) Performance-based Interest Subsidy System: This is part of the financial support program to promote transitions toward carbon neutrality under the jurisdiction of Japan's Ministry of Economy, Trade and Industry (METI). For details, please refer to the METI website.
https://www.meti.go.jp/policy/economy/keiei_innovation/sangyokinyu/cnrishihokyu/index.html (Japanese only)

For more information, refer to the following MOL releases:
January 26, 2024: MOL Establishes Sustainable Finance Framework; Using it For 5 Loan Deals - Part of Ongoing Environmental Strategy Initiatives -
April 3, 2024: MOL Decides to Raise Funds through Transition Linked Loan Using Sutainable Finance Frameowrk - Steadily Pursuing Environmental Strategy Initiatives -

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-," "Human & Community -Contributing to the growth and development of people and communities-."