Japanese shipping major Kawasaki Kisen Kaisha (K Line) revealed plans to finance its transition linked loan (TLL) at the end of September 2021, says an article published on offshore energy website.
Transition linked loan
The carrier has formulated a “Transition Linked Finance Framework” which is based on K Line Environmental Vision 2050.
The loan with Mizuho Bank and Mizuho Securities will be financed using this framework, the company said. The amount and the term are yet to be disclosed.
In order to promote the transition linked finance, K Line has got the certification of “Basic Guidelines on Climate Transition Finance” by the Ministry of Economy Trade and Industry and related guidelines and policies for this TLL by Japan Credit Rating Agency, Ltd. (JCR).
This TLL is the company’s second transition finance since the 1st transition loan in March 2021.
Lease for LNG-powered car carrier
In March 2021, the company announced it secured an operating lease for the LNG-powered car carrier named Century Highway Green through climate transition loan with Mizuho Bank and Sumitomo Mitsui Trust Ban.
This JPZ 5.9 billion ($ 54 million) loan was recognized as the very first climate transition finance in Japan.
Summary
- Japanese shipping major Kawasaki Kisen Kaisha (K Line) revealed plans to finance its transition linked loan.
- The carrier has formulated a “Transition Linked Finance Framework” which is based on K Line Environmental Vision 2050.
- TLL is the company’s second transition finance since the 1st transition loan in March 2021.
- JPZ 5.9 billion ($ 54 million) loan was recognized as the very first climate transition finance in Japan.
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Source: offshore energy
