Mitsui O.S.K. Lines is offering ¥22.0bn of unsecured domestic bonds in two tranches, and says all of the net proceeds will go to LNG-carrier investment by the end of March 2027. The terms are in a shelf registration supplement (number 7-Kanto 1-2) filed on 8 October 2026.
The two tranches
The 32nd series is a ¥9.1bn five-year bond with a 2.857% annual coupon, due 15 October 2031. The 33rd series is a ¥12.9bn ten-year bond at 3.681%, due 15 October 2036. Both are priced at par, pay interest each April and October, and settle on 15 October 2026. The first coupon falls on 15 April 2027.
The bonds carry no collateral or guarantee. The company has agreed that if it gives security on other domestic unsecured bonds, it will give these bonds equal-ranking security. The covenant excludes unsecured bonds that carry a secured-conversion clause, as the supplement defines it. Japan Credit Rating Agency assigned both an A+ rating on 8 October 2026, which it describes as an opinion on credit risk, not a recommendation.
Daiwa Securities, SMBC Nikko Securities and Mizuho Securities underwrite both tranches on a firm-commitment basis. Shinkin Securities joins them on the five-year bond only.
Where the money goes
After estimated issuance costs of ¥111mn, net proceeds come to ¥21.889bn. The company plans to spend all of it on capital investment related to LNG carriers by the end of March 2027, and to hold it in cash or cash equivalents until it is used.
The supplement does not give vessel numbers, delivery dates or charter contracts. The bonds are drawn from a ¥200bn shelf registration that runs to 24 March 2027.