NYK To Issue Transition Bonds to Boost Its Decarbonization Strategy

Japanese shipping giant Nippon Yusen Kaisha (NYK) has announced that it will issue transition bonds in late November as part of its ongoing effort to accelerate major decarbonization initiatives. These bonds, worth approximately JPY 20 billion (about $130 million), represent NYK’s continued push toward cleaner fuel technologies and long-term environmental sustainability.

NYK’s Transition Bonds: Supporting a Low-Carbon Future

NYK’s transition bonds are designed to support projects that enable the company to move steadily toward a low-carbon society. This will be NYK’s fifth issuance of transition bonds, highlighting the growing importance of sustainable financing in the shipping sector.

The raised funds will be directed toward projects under NYK’s medium-term management plan, Sail Green, Drive Transformations 2026 A Passion for Planetary Wellbeing. These projects include investments in LNG-fueled vessels, which serve as an important transitional solution for reducing greenhouse gas emissions.

Fuel Conversion Roadmap Toward 2050

NYK has outlined a long-term Vessel Fuel Conversion Scenario intended to achieve significant emissions reduction by 2050.

• Near-term (by 2030): The company plans to expand its fleet of LNG-powered ships and adopt advanced GHG-reducing technologies.

• Long-term (toward 2050): NYK aims to shift to ammonia-fueled vessels, selecting the most efficient and environmentally friendly fuels based on each vessel’s specific needs.

NYK has been a leader in sustainable maritime finance, having issued the industry’s first green bonds in 2018 and Japan’s first transition bonds in 2021.

NYK’s decision to issue new transition bonds underscores its commitment to cleaner shipping operations and long-term sustainability goals. By investing in LNG vessels now and planning for ammonia-fueled ships in the future, NYK continues to take measurable steps toward a zero-emission maritime industry by 2050.