Japanese shipping company NYK signed two sustainability linked loan (SLL) agreements to promote and support environmentally and socially beneficial economic activities.
The agreements link corporate loan terms with a customer’s performance against mutually agreed sustainability performance targets (SPTs) consistent with a customer’s ESG strategy.
The first 5-year loan was executed on March 31 and includes six banks with a value of $204m. The second, $600m is a revolving credit also executed on March 31 and the lender is Sumitomo Mitsui Banking. These two agreements bring NYK’s total number of SLLs to four.
The targets in both agreements are to maintain a high CDP (Carbon Disclosure Project) climate change disclosure score. As long as high CDP ratings are achieved, the interest rate terms will remain unchanged until the repayment deadline.
On February 3, NYK announced the NYK Group ESG Story, which aims to further integrate ESG into the company’s management strategy, and this is the first ESG finance project since that announcement.
Under its ‘Staying Ahead 2022 with Digitalization and Green’ plan, announced in April 2018, NYK became the first to publish green bonds in the international shipping industry.