Japanese shipping company IINO Kaiun Kaisha (IINO Lines) has entered into a loan agreement with Mizuho Bank to fund the acquisition of a methanol-capable very large crude carrier (VLCC), according to Ship & Bunker. The deal marks a notable step in the company’s broader push toward lower-emission vessel operations.
Sustainability-Linked Financing
The transaction falls under Mizuho Bank’s Sustainable Shipping Impact Finance framework, which Ship & Bunker reports uses an evaluation methodology developed in collaboration with Nippon Kaiji Kyokai. Under this approach, vessels are assessed according to their CO2 reduction performance, and only those reaching defined thresholds are eligible for financing.
Key performance indicators tied to emissions reductions will apply not only to the financed vessel but also across IINO Lines’ broader fleet. The framework has been independently validated by Japan Credit Rating Agency, and the arrangement includes a commitment to ongoing dialogue between the shipowner and lender in support of decarbonisation objectives.
Vessel Details and Timeline
According to Ship & Bunker, the VLCC in question has already satisfied the eligibility criteria set out under the framework. The vessel will be equipped with a dual-fuel engine capable of operating on both methanol and conventional marine fuel, with delivery from 2027.
Aligned With Long-Term Emissions Targets
Ship & Bunker reports that the financing arrangement is consistent with IINO Lines’ stated goal of achieving a 20% reduction in emissions intensity by 2030, as well as its longer-term ambition to reach carbon neutrality by 2050.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
