NYK will receive 2 billion yen from Taiyo Life Insurance Company as a green loan to exclusively finance the building of NYK’bet365 違法irst methanol-fueled chemical tanker. A green loan is a loan whose proceeds are used solely for the purpose of funding environment-friendly projects. NYK will continue to take stepbet365 違法or the development and use of technology linked to environmental performance by proactively promoting green finance.

1. Background

In the medium-term management plan “Staying Ahead 2022 with Digitalization and Greenbet365 違法dquo; that NYK announced in March, the company indicated its goal to integrate ESG principles into management strategies to contribute to the sustainable development of society and enrichment of the companybet365 違法squo;s corporate value.

In fact, in May NYK became the first company in the global shipping industry to issue labeled green bonds, and they have been used to fund environment-friendly liquefied natural gas (LNG) fueled vessels and other NYK projects. To support investment in environmental technology more from a finance viewpoint, NYK decided to enter into this green loan agreement with Taiyo Life Insurance Company.

2. Green Loan Framework

Debtor: NYK
Creditor: Taiyo Life Insurance Company
Loan payable: 2 billion yen
Period: 10 yearbet365 違法rom December 27, 2018, to December 27, 2028
Use of proceeds: Building a methanol-fueled chemical tanker
Certification: Japan Credit Rating Agency Ltd. (JCR)
Scheme: Below


This green loan has been certified by Japan Credit Rating Agency Ltd. (JCR) to be aligned with the highest rank of “Green 1bet365 違法dquo; of the Green Loan Principles.*

All the finance procured from this green loan will be used to build the new methanol-fueled chemical tanker. Its methanol-fueled main engine will reduce sulphur oxides (SOx) by approximately 99 percent compared with the use of heavy oil. In fact, the vesselbet365 違法squo;s entire SOx emissions, including the electrical generator, will fall by about 75 percent compared with using oils that comply with low-sulphur oil regulations. Using methanol as a marine fuel helps meet the International Maritime Organizationbet365 違法squo;s new regulations that cap sulphur content in marine fuels coming into effect in 2020. Methanol is a clean-burning fuel that produces less nitrogen oxides (NOx) and particulate matter (PM), enabling more environment-friendly operation by NYK.

The Green Loan Evaluation by JCR can be accessed below.
/before_files/english/news/2018/__icsFiles/afieldfile/2019/01/10/report_en_1.pdf

- Outline of the ship
Deadweight Tonnage: about 49,000 tons
Length overall: about 183 meters
Breadth: 32.2 meters
Shipbuilder: Hyundai Mipo Dockyard Co. Ltd.
Delivery: Scheduled for 2019

3. Future

NYK will promote green finance and continue its efforts to keep a wide range of stakeholders involved in the companybet365 違法squo;s proactive approach to environmental investment as the company makes efforts to contribute to realizing a sustainable society with technology that lessens environmental burdens.

* Green Loan Principles
International principles launched by the Europe-based Loan Market Association (LMA) and the Asia Pacific Loan Market Association (APLMA) in March 2018.

- Reference

Announcement on May 18, 2018, “Terms and Conditions of NYKbet365 違法squo;s Green Bonds Determined,bet365 違法dquo;
/english/news/2018/1190610_1687.html
Announcement on May 8, 2018, “NYK Received a Second-party Opinion and MOEJ's confirmation,bet365 違法dquo; http://www.nyk.com/english/news/2018/1190556_1687.html
Announcement on April 17, 2018, “NYK to Issue Green Bonds,bet365 違法dquo;
http://www.nyk.com/english/news/2018/1190457_1687.html
Announcement on February 15, 2018, “NYK Concludes Long-term Charter Agreement for Methanol-fueled Chemical Tanker,bet365 違法dquo;
/english/news/2018/1190017_1687.html