Japanese shipowner NYK Line has signed a JPY 9 billion (USD 80.6 million) syndicated loan agreement to finance the purchase and installation of scrubbers.
This is Japan’s first syndicated loan to be certified by Japan Credit Rating Agency (JCR) with its highest ranking of Green 1, demonstrating the loan to be aligned with the core components of the Green Loan Principles.
NYK’s medium- to long-term environmental targets include a 30% per ton-kilometer reduction of GHG emissions by 2030 compared with a 2015 base year, and 50% per ton-kilometer by 2050 compared with the same base year.
“NYK 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,” the company explained.
NYK’s medium-term management plan 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 the global shipping industry to issue labelled green bonds, and after that achievement in March 2018 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 JPY 20 billion.