IINO Lines and Mizuho Bank Sign Agreement on Transition Loan for LPG Dual-Fuel VLGC
IINO Kaiun Kaisha, Ltd. (President: Yusuke Otani; hereinafter "IINO Lines") and Mizuho Bank, Ltd. (President & CEO: Masahiko Kato; hereinafter "Mizuho Bank") have signed an agreement on a Transition Loan.
A Transition Loan is a financing instrument designed to fund corporate projects that contribute to decarbonization and a lower-carbon economy as part of the transition toward a carbon-neutral society. To support IINO Lines' decarbonization efforts through financing, Mizuho Bank arranged this loan to finance the acquisition of "LUMI AURORA", LPG dual-fuel VLGC (Very Large Gas Carrier) equipped with an LPG dual-fuel propulsion system. The acquisition constitutes an eligible project under the Green Transition Finance Framework1 established by IINO Lines. The vessel has one of the largest cargo tank capacities among VLGCs, enabling lower fuel consumption per ton of cargo transported. Furthermore, the use of LPG as fuel helps reduce greenhouse gas (GHG) emissions compared with conventional vessels powered solely by heavy fuel oil.
The Green Transition Finance Framework established by IINO Lines is structured around the Company's transition strategy for its shipping business and is aligned with the Climate Transition Finance Handbook and Climate Transition Bond Guidelines published by the International Capital Market Association (ICMA), as well as the Basic Guidelines on Climate Transition Finance published by Japan's Financial Services Agency, Ministry of Economy, Trade and Industry, and Ministry of the Environment. Furthermore, IINO Lines has obtained a Second-Party Opinion (SPO)2 from DNV Business Assurance Japan K.K., an independent third-party assessment provider, confirming that the framework is consistent with these documents.
Under its medium-term management plan, "Transformation for a Sustainable Future" (FY2026-FY2030), IINO Lines has set a target of achieving net-zero GHG emissions by 2050 and positioned its decarbonization strategy as one of its key strategies. In its shipping business, the Company is pursuing initiatives to reduce GHG emissions, including investments in low-carbon dual-fuel vessels, and will continue to contribute to the realization of a sustainable society through its sustainability initiatives.
Mizuho Financial Group has developed a "grand design" for Japan's desired future industrial structure and actively supports its customers' decarbonization and transition efforts toward realizing this vision. By leveraging its strengths in industry and sector expertise and its ability to connect stakeholders, Mizuho Financial Group provides integrated solutions across the Group and works together with its customers to take on new challenges.
Reference
1：Overview of the Green Transition Finance Framework established by IINO Lines (only in Japanese)
https://www.iino.co.jp/kaiun/csr/files/green-transition-finance-framework.pdf
2：Second-Party Opinion issued by DNV Business Assurance Japan K.K. (only in Japanese)
https://www.dnv.jp/
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