On January 26, NYK Line concluded its first transition loan based on the NYK Green/Transition Finance Framework, in agreement with MUFG Bank and others.
According to NYK, twenty-one financial institutions from Japan and overseas that support NYK’s ESG management participated in the loan. As informed by the company, proceeds will be used for projects to reduce greenhouse gas emissions, such as constructing next-generation fuel vessels.
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. NYK will continue to promote ESG finance and aim to have its growth strategy based on ESG management.
| Agreement date | January 26, 2024 |
| Borrower | NYK Line |
| Arranger and agent | MUFG Bank |
| Creditors | Twenty-one financial institutes, including MUFG Bank |
| Loan payable | 300 million US dollars |
| Use of proceeds | New and existing projects referenced in “vessel fuel conversion scenario towards 2050” in NYK’s medium-term management plan. LNG-fueled vessels, LPG-fueled vessels |
| Second-party opinion | DNV Business Assurance Japan K.K |
