SUMITOMO Mitsui Banking Corp has agreed to provide Mitsui OSK Lines with a ¥ 60bn ($451.5m) transition-linked financing.


The tenor of the loan is five years, and the proceeds will be used for capital expenditure, MOL said in a statement. 


Transition-linked loan is a financial instrument designed to assist companies that are taking action on climate change and are committed to reducing greenhouse gas emissions.


This is the third such loan that MOL has procured, following previous financing arrangements for the construction of LNG bunkering vessel Gas Vitality (IMO: 9909285) in November last year, and the bulk carrier Shofu Maru (IMO: 9919395) in October. Shofu Maru is equipped with the Wind Challenger, a system that converts wind power into propulsive force. 


SMBC is the lender for both facilities.


The latest loan, however, is the first transition-linked financing garnered by MOL which is not tied to a specific vessel.


 
https://lloydslist.maritimeintelligence.informa.com/LL1143435/MOL-obtains-$452m-transition-linked-financing-from-SMBC