Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK) has secured its first transition syndicated loan to finance projects for reducing greenhouse gas (GHG) emissions such as constructing next-generation fuel vessels.
On January 26, NYK concluded the loan agreement with MUFG Bank and other creditors.
Specifically, the loan amounts to $300 million and its proceeds will be used for new and existing projects referenced in the “vessel fuel conversion scenario towards 2050” in NYK’s medium-term management plan.
First transition loan
It is the shipping company’s first transition loan based on the 2021-developed NYK Green/Transition Finance Framework. Under the framework, the company established green/transition financing criteria involving the use of proceeds, evaluation, selection of projects, and management and reporting of funds raised.
As explained, NYK concluded the loan to accelerate ESG management advocated in NYK’s medium-term management plan “Sail Green, Drive Transformations 2026 – A Passion for Planetary Wellbeing-.“
Securing various funding resources for decarbonization solutions will help NYK to accelerate its greenhouse gas emission reduction. NYK issued the shipping industry’s first green bonds in 2018 and Japan’s first transition bonds in 2021.
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Source : Off shore energy
