IINO Kaiun Kaisha (IINO Lines) has signed a Sustainable Shipping Impact Finance loan agreement with Mizuho Bank for a methanol dual-fuel very large crude carrier (VLCC), in the latest move supporting the shipowner’s decarbonisation strategy.

The agreement was signed on 31 March, with execution scheduled for June 2027. According to the Tokyo-based company, the financing uses an evaluation method developed in collaboration with Nippon Kaiji Kyokai to assess vessels based on their CO₂ emissions-reduction performance.

Under the structure, Mizuho Bank provides financing for ships that satisfy specified environmental criteria. IINO Lines said the framework has also received an opinion from Japan Credit Rating Agency stating that it aligns with the Ministry of the Environment’s Basic Approach to Impact Finance.

The methanol dual-fuel VLCC, which is due for delivery from 2027 onward, will be equipped with a main engine capable of running on both methanol and heavy fuel oil. IINO Lines said the vessel was assessed under the framework and met the required criteria to a high standard.

The financing arrangement also includes key performance indicators intended to encourage CO₂ emissions reductions in the operation of the financed vessel and in fleets owned and managed by borrowers. Regular discussions between the lender and borrower are also planned to support decarbonisation efforts.

In May 2023, IINO Lines set out its mid-term management plan, “The Adventure to Our Sustainable Future,” which includes a target to cut greenhouse gas emissions per tonne-mile in its shipping business by 20% by 2030 compared with FY2020. The company aims to achieve carbon neutrality across the business by 2050.

Mizuho Bank launched its Sustainable Shipping Impact Finance initiative in March 2025. According to IINO Lines, the bank intends to use the product to support decarbonisation in shipping and contribute to Japan’s wider carbon-neutrality goals.

The financing model is also intended to create what the bank describes as a virtuous cycle that links positive climate impact to revenue generation, while supporting stronger corporate value.