TOKYO: Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Junichiro Ikeda) announced last August 7 a plan to issue green bonds (its 20th and 21st series unsecured corporate bonds) through a public offering in Japan’s domestic market.
Green bonds are used to raise funds for businesses aimed at protecting and improving the environment. MOL established the MOL Group Environmental Vision 2030 in April 2017, and designated environment-related and emission-free businesses as core activities in its “Rolling Plan 2018” management plan.
The MOL Group also views responses to stricter environmental regulations and activities to reduce its environmental impact as opportunities to create new businesses and diversify its business portfolio, and address new challenges in technical innovation. To foster a deeper understanding of the MOL Group’s proactive initiatives on the environment among a wide range of stakeholders, the bonds are targeted to both institutional and individual investors.
Main use of the fund will be for:
1. Ballast water treatment system
2. SOx scrubber
3. LNG-fueled vessel
These vessels use liquefied natural gas (LNG) as fuel instead of conventional heavy fuel oil. Combustion of LNG virtually eliminates SOx emissions, compared to heavy fuel oil, and also results in lower emissions of nitrogen oxide (NOx) and carbon dioxide (CO2).
4. LNG bunkering vessel
This type of vessel supplies LNG-fueled vessels, and also runs on LNG fuel. It will contribute to wider use of LNG as a fuel for merchant vessels. In February 2018, MOL signed long-term charter contract for the world’s largest LNG bunkering vessel. It is slated to supply LNG fuel to LNG-fueled mega containerships in Northern Europe starting in 2020.
5. New Propeller Boss Cap Fins (PBCF)
The PBCF system reduces fuel consumption by improving the efficiency of ships’ propellers, which in turn reduces exhaust emissions. It can boost fuel efficiency by around 5% compared to a similar vessel not equipped with a PBCF. The new type of PBCF was jointly developed by MOL, Akishima Laboratories (Mitsui Zosen) Inc., and MOL Techno-Trade, Ltd. MOL Group’s MOL Techno-Trade has started sales of this upgraded version of the PBCF-in use on over 3,200 vessels with all over the world-which promises even greater energy-saving effects.
6. Wind Challenger Plan
MOL participates in the Wind Challenger Plan, a joint industry-academia research project led by Tokyo University and launched in 2009. The project focuses on using advanced sails to provide propulsion for merchant vessels.
This is the first time a company in Japan has issued green bonds aimed at individual investors.
Courtesy of The Manila Times.