NYK Line Plans $1.95b Bond Issue To Finance Green Fuel Switch


  • Nippon Yusen Kaisha plans to issue green bonds totalling 100 billion yen ($653 million) to finance the construction of ammonia-fuelled vessels.
  • NYK also plans to issue transition bonds worth 200 billion yen ($1.3 billion) to finance the construction of LNG-fuelled vessels.

NYK has announced that it will issue its 47th unsecured corporate bonds (transition bonds) and 48th unsecured corporate bonds (green bonds) in the Japanese domestic market this month and the funds generated will be used to support its transition to alternative marine fuels, reports Engine.

This will be NYK’s second green bond issuance since May 2018 and third transition bond issuance since July 2023.

In a statement issued, NYK said it will ‘use the funds raised by the transition bonds for projects aligned with the company’s long-term transition strategy toward decarbonization (transition projects), such as LNG-fuelled vessels’.

The company added that: ‘The funds generated by the green bonds will be used for projects that mitigate global warming (green projects), such as ammonia-fuelled ammonia carriers to be built through the Green Innovation Fund.’

Did you subscribe to our daily newsletter?

It’s Free! Click here to Subscribe!

Source: Engine