Transition Loans
NYK has been working to deepen its ESG financing as part of its ESG management, starting with the issuance of the world's first green bond by an ocean shipping company in May 2018.
NYK will continue its efforts to keep a wide range of stakeholders involved in the company's proactive approach to environmental investment as the company makes efforts to contribute to realizing a sustainable society through technology that lessens environmental burdens.
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Transition Syndicated Loan (Arranged in January 2024)
| Agreement date | January 26, 2024 |
|---|---|
| Arranger and agent | MUFG Bank, Ltd. |
| Creditors | Twenty-one financial institutes, including MUFG Bank, Ltd.1 |
| Total amount | USD 300 million |
| Period | 5 years; from January 31, 2024, to January 31, 2029 |
| Use of proceeds | New and existing projects referenced in "vessel fuel conversion scenario towards 2050" in NYK's medium-term management plan. LNG-fueled vessels, LPG-fueled vessels |
| Framework |
Third-party Assessment
Second Party Opinion
NYK developed its Green/Transition Bond Framework in July 2021, and DNV Business Assurance Japan K.K., an independent external reviewer, provided a second-party opinion. Under this framework, NYK issued transition bonds (No. 1) in July 2021 and transition bonds (No. 2) in July 2023.
The framework has now been revised and renamed as the Green/Transition Finance Framework (hereinafter, “this framework”) for our first transition loan. DNV Business Assurance Japan K.K. has provided a second-party opinion confirming that this framework is aligned with Green Bond Principles 2021 (ICMA), Green Bond Guidelines 2022 (Ministry of the Environment, Japan), Green Loan Principles 2023 (LMA), Green Loan Guidelines 2022 (Ministry of the Environment, Japan), Climate Transition Finance Handbook 2023 (ICMA), and Basic Guidelines on Climate Transition Finance (May 2021) (Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment, Japan).
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Summary of Green/Transition Finance Framework
1. The NYK Group’s Absolute Corporate Emissions Targets
In “NYK Group ESG Story 2023,” the NYK Group established the new absolute corporate emissions targets (baseline: 2021) indicated below.
The total amount of fiscal 2030 emissions from Scope 1 (direct GHG emissions) and Scope 2 (indirect GHG emissions such as the use of electricity) should be 45% less than the amount recorded in fiscal 2021. In addition, as a long-term target, the total amount of fiscal 2050 emissions, including Scope 3 (emissions in the supply chain), should be net zero. We will adopt two approaches to achieve these targets: GHG reduction and GHG removal.
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2. Use of Proceeds
NYK plans to allocate the proceeds from green/transition bonds to finance new and existing investments related to eligible projects, such as those indicated below. Syndicated loans will be used for LNG-fueled and LPG-fueled vessels, among others.
・Green Projects (Funds raised by green bonds and transition bonds can be allocated)
Renewable energy (offshore wind power, green terminals), ammonia-fueled vessels, hydrogen fuel-cell vessels
・Transition Projects (Funds raised by transition bonds can be exclusively allocated)
LNG-fueled vessels, LNG bunkering vessels, LPG-fueled vessels, operation efficiency & optimization
1 Creditors
Agricultural Bank of China Ltd., Tokyo Branch; Bank of Communications Co., Ltd., Tokyo Branch; Bank of Taiwan, Tokyo Branch; China Construction Bank Corporation, Tokyo Branch; E. SUN Commercial Bank Ltd., Tokyo Branch; Hana Bank, Tokyo Branch; Industrial and Commercial Bank of China Ltd., Tokyo Branch; MUFG Bank,Ltd.; PT. Bank Negara Indonesia (Persero) Tbk, Tokyo Branch; Resona Bank, Limited; SBI Shinsei Bank, Limited; The 77 Bank, Ltd.; The Ashikaga Bank, Ltd.; The First Bank of Toyama, Ltd.; The Gunma Bank, Ltd.; The Hachijuni Bank, Ltd.; The Iyo Bank, Ltd.; The Joyo Bank, Ltd.; The Keiyo Bank, Ltd.; The Nishi-Nippon City Bank, Ltd.; The Shikoku Bank, Ltd.