This is Japan’s first syndicated loan to be certified by Japan Credit Rating Agency Ltd. (JCR) with its highest ranking of “Green 1,” thus demonstrating the loan to be aligned with the core components of the Green Loan Principles.
This forms part of NYK’s medium-term management plan, which includes the group’s intent to integrate environmental, social, and governance (ESG) initiatives into management strategy by establishing new medium- to long-term environmental targets.
To achieve these goals, NYK was the first company in shipping to issue labelled green bonds in March 2018. After this, the company received a green loan from Taiyo Life Insurance Company in December 2018. This new syndicated loan agreement is the third form of green financing for NYK for a total of over 20 billion yen.
In the green loan evaluation conducted by JCR, this syndicated loan was evaluated for its contribution to SDGs and targets.
NYK said it will promote green finance and continue its efforts to keep a wide range of stakeholders involved in the company’s proactive approach to environmental investment as the company makes efforts to contribute to realizing a sustainable society with technology that lessens environmental burdens.
In line with a generally greater awareness on the devastating impacts of climate change, more and more organizations secure green loans to fit environmentally purpose solutions.
In December 2018, Singapore-based shipping owner Quantum Pacific Shipping secured a US$40m Green Loan from the French bank giant BNP Paribas, to finance the purchase and installation of scrubbers for its fleet. The signing of this agreement is considered as the first green loan issued to a shipping company in Asia Pacific.