IINO Lines and Mizuho Bank Sign Sustainable Shipping Impact Financing Agreement for Very Large Ethane Carrier (VLEC)

IINO Kaiun Kaisha, Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Yusuke Otani; hereinafter 'IINO Lines') has
signed a loan agreement¹ with Mizuho Bank, Ltd. (Head Office: Chiyoda-ku, Tokyo; President & CEO:
Masahiko Kato) for the first product² from the Sustainable Shipping Impact Finance initiative, which was
developed and implemented to promote decarbonization for the shipping sector, shipping companies, and
shipowners.

This product uses a unique evaluation method developed in collaboration with the Nippon Kaiji Kyokai, the world's largest classification society³, 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 held and managed by borrowers, and regular discussions (constructive dialogue) will be conducted to support the development of decarbonization initiatives and realization of a positive impact on climate change by individual shipping companies and shipowners. The product's framework⁴ has received an opinion⁵ from the Japan Credit Rating Agency, Ltd. (JCR) to the effect that it complies with the 'Basic Approach to Impact Finance' set out by the Ministry of the Environment.

An evaluation of the very large ethane carrier (VLEC) to be built by IINO Lines has recently been 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 ethane, which emits less CO₂ than conventional fuel oil, as well as heavy fuel oil, and it is scheduled for delivery from the second half of 2025.

Through the provision of this product, Mizuho Bank will support shipping sector customers' decarbonization initiatives and the strengthening and transformation of their businesses towards this end, 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 enhance corporate value⁶.

In May 2023, IINO Lines formulated a mid-term management plan, 'The Adventure to Our Sustainable Future'⁷, 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 to FY2020, and in the real estate business by 75% compared to FY2013, and to achieve carbon neutrality across the company by 2050, while actively promoting investment in innovative technologies. IINO Lines will continue to promote sustainability initiatives, including those to address climate change, with the aim to realize a sustainable society.

Sustainable Shipping Impact Finance project summary
Lender: KNIGHTSBRIDGE NAVIGATION S.A. (wholly-owned IINO Lines)
Creditor: Mizuho Bank, Ltd.
Date of agreement: March 21, 2025
Execution date: October 2025 (planned)

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: The contracting party is KNIGHTSBRIDGE NAVIGATION S.A., a wholly-owned subsidiary of IINO Lines.
3: 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.
4: Mizuho Bank Sustainable Shipping Impact Finance Framework (Japanese language only):
https://www.mizuhobank.co.jp/corporate/sustainability/shipping/pdf/framework.pdf
5: Website of Japan Credit Rating Agency, Inc. (Japanese language only):
https://www.jcr.co.jp/greenfinance/
6: Mizuho Financial Group, Inc. news release dated May 14, 2024 about Mizuho publishing its Impact Business Compass
https://www.mizuhogroup.com/news_release/20240514release_eng.html
7: 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

About Nippon Kaiji Kyokai:
Nippon Kaiji Kyokai (ClassNK) is the world's largest international classification society dedicated to maritime transport safety and the protection of the marine environment. A classification society is an organization that establishes rules and inspects ships from a neutral third-party standpoint, and registers vessels for classification, which is required for insuring merchant vessels. With a history of more than 120 years and 130 offices in 58 countries around the world, it has acquired the authority to inspect and issue certificates on behalf of ships from more than 100 countries of registry (flag states) in accordance with international conventions and regional regulations. In addition, the Society draws on its many years of knowledge and experience to provide various management system certifications, including quality, environmental, occupational health and safety, verification of GHG emissions and certifications related to renewable energy-related equipment. The Society is developing the ClassNK Transition Support Services, which provides comprehensive support for everyone involved in the shipping business to help them cope with the transition to decarbonized fuels, and will continue to support customers in all aspects of their efforts to decarbonize.

Inquiries:
Finance & Accounting Department, IINO Lines +81-3-6273-3175
Public Relations Office, Mizuho Bank, Ltd. +81-3-5252-6574

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