MOL enters into agreement for fund procurement through hybrid loan
Mitsui O.S.K. Lines, Ltd. has entered into an agreement to procure ¥100 billion through a hybrid loan, the company said in its press release.
To date, MOL has implemented business structural reforms mainly in dry bulkers and containerships. It has focused on making a swift recovery to a growth trajectory, enhancement of its earnings base targeting the next midterm management plan, and restructuring of its financial base to ensure stable, sustainable growth. MOL decided to pursue fund procurement through the Hybrid Loan that allows it to balance growth strategies on one hand and financial health on the other.
As credit rating agencies are expected to recognize the Hybrid Loan as an equity credit characteristics similar to equity instruments, this allows MOL to effectively strengthen its financial position while avoiding equity dilution.