IINO Lines and Mizuho Bank Sign Sustainable Shipping Impact Financing Agreement for a Methanol Dual-Fuel VLCC
IINO Kaiun Kaisha, Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Yusuke Otani, hereinafter "IINO Lines") has signed a loan agreement with Mizuho Bank, Ltd. (Head Office: Chiyoda-ku, Tokyo; President & CEO: Masahiko Kato, hereinafter "Mizuho Bank") for the Sustainable Shipping Impact Finance*1 (the "Product") regarding a methanol dual-fuel VLCC (Very Large Crude Carrier).
This Product uses a unique evaluation method developed in collaboration with Nippon Kaiji Kyokai, the world's largest classification society*2, to assess the environmental performance of vessels eligible for financing in terms of CO2 emission reduction. Mizuho Bank will provide loans for vessels that meet certain criteria.
In addition, KPIs will be set to promote CO2 emission reduction in the operation of loaned vessels and fleets owned and managed by borrowers. Regular discussions (constructive dialogue) will be conducted to support the development of decarbonization initiatives and the realization of positive climate impact by individual shipping companies and shipowners. The framework of the Product has received an opinion*3 from Japan Credit Rating Agency, Ltd. (JCR) stating that it complies with the "Basic Approach to Impact Finance" established by the Ministry of the Environment.
An evaluation of the methanol dual-fuel VLCC to be built by IINO Lines was recently carried out, and it met the required criteria to a high standard, leading to the conclusion of a contract for this Product. The vessel will be equipped with a dual-fuel main engine that can use methanol, which emits less CO2 than conventional fuel oil, as well as heavy fuel oil, and it is scheduled for delivery from 2027 onward.
In May 2023, IINO Lines formulated a mid-term management plan, "The Adventure to Our Sustainable Future"*4, to strengthen its commitment to sustainability, including climate change. In the shipping business, IINO Lines has set targets to reduce greenhouse gas emissions per tonne-mile by 20% by 2030 compared with FY2020, and in the real estate business by 75% compared with FY2013, aiming to achieve carbon neutrality across the company by 2050 while actively promoting investment in innovative technologies.
Through the provision of this Product, Mizuho Bank will support decarbonization initiatives within the shipping sector and the strengthening and transformation of customers' businesses towards this goal, thereby contributing to Japan's achievement of carbon neutrality. Mizuho Bank will also work with customers to realize a virtuous cycle of positive climate impact and revenue generation, aiming to solve social and environmental issues and to enhance corporate value*5.
< Sustainable Shipping Impact Finance project summary >
| Borrower | IINO Kaiun Kaisha, Ltd. |
|---|---|
| Lender | Mizuho Bank, Ltd. |
| Date of agreement | March 31, 2026 |
| Execution date | June, 2027 (Scheduled) |
*1: Mizuho Bank press release dated March 21, 2025, concerning launch of the Sustainable Shipping Impact Finance initiative (Japanese language only):
https://www.mizuhobank.co.jp/release/pdf/20250321release_jp.pdf
*2: An organization that examines whether ships (including structures, engines, and equipment) are designed, planned and built in accordance with regulations. In recent years, it has also carried out audits and certification of the environmental performance of ships.
*3: Website of Japan Credit Rating Agency, Inc. (Japanese language only):
https://www.jcr.co.jp/greenfinance/
*4: IINO Lines' mid-term management plan "The Adventure to Our Sustainable Future"
https://contents.xj-storage.jp/xcontents/AS00371/aa86a307/1b3b/4884/bba0/064913fd15c4/20230407152424087s.pdf
*5: Mizuho Financial Group, Inc. press release dated May 14, 2024, concerning "The Impact Business Compass" :
https://www.mizuhogroup.com/news-release/20240514release-eng
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