Green Bonds

NYK has been working to deepen its ESG financing as part of its ESG management, starting with the issuance of the world's first green bond by an ocean shipping company in May 2018.

NYK will 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 through technology that lessens environmental burdens.

More Information:

Summary of Green Bonds

Name Nippon Yusen Kabushiki Kaisha Unsecured Corporate Bonds No.40 (NYK Green Bond)
Issue date May 24, 2018
Pricing date May 18, 2018
Maturity 5 years
Issue Amount 10 billion yen
Coupon 0.290%
Use of Proceeds

Investment toward mainly new, but including existing (refinancing) projects indicated in NYK's "Roadmap for Environmentally Friendly Vessel Technologies," such as (1) LNG-fueled ships, (2) LNG bunkering vessels, (3) ballast water treatment equipment, and (4) SOx (sulfur oxides) scrubber systems

Credit ratings A  (Japan Credit Rating Agency, Ltd.)

Third-party Evaluation On Eligibility

Second-party Opinion

NYK has formalized a Green Bond Framework, incorporating the Green Bond Principles,*1 under NYK's broader roadmap for sustainability in order to formalize the objectives, commitments, and processes related to this bond. A second-party opinion has been received from Vigeo Eiris.

In the evaluation conducted by Vigeo Eiris, the green bonds were evaluated for its contribution to SDGs objectives and targets.

MOEJ Model Case for Green Bonds

NYK's green bonds were given approval as "a model case for green bond issuance in fiscal year 2018" by the Ministry of the Environment, Japan (MOEJ) and have been confirmed to be in alignment with the Green Bond Guidelines*2 issued by the MOEJ and its contractors.

  1. *1Green Bond Principles
    Voluntary process guidelines regarding green bond issuance established by the Green Bond Principles Executive Committee, which is a membership association facilitated by the International Capital Market Association (ICMA).
  2. *2Green Bond Guidelines
    Guidelines, formulated and announced by the MOEJ in March 2017 with due consideration to consistency with the Green Bonds Principles, that provide issuers, investors, and other market participants with illustrative examples of specific approaches and interpretations tailored to the characteristics of Japan's bond market.

List NYK Green Bond Investors

Investors who have emphasized the significance of NYK's green bond issuance and have committed to investing (as of May 18, 2018):

  • The Toa Reinsurance Company, Limited
  • Sumitomo Mitsui Trust Bank, Limited
  • Mitsubishi UFJ Trust and Banking Corporation
  • Hokkaido Roudoukinko
  • Moka Shinyoukumiai
  • Iwate Prefectural Credit Federation Of Agricultural Cooperatives
  • The Shinonome Shinkin Bank
  • Hiratsuka Shinkin Bank
  • Kanagawa Prefectural Credit Federation of Agricultural Cooperatives
  • Azuma shinyoukumiai
  • Kansai University
  • Nagoya Broadcasting Network Co.,Ltd.
  • Fukuchi Town
  • Matsuoka Jisho Co. Ltd.

Green Bond Framework

1. Use of proceeds

NYK’s medium-term management plan (formulated in 2018) [PDF:2.17MB]comprises the company’s medium- to long-term environmental (CO2 emission reduction) targets.
NYK has a long-term roadmap for environmentally friendly vessel technologies. Each project that is to use proceeds of the bonds is considered based on its contribution to achieve the targets and its contribution to achieving the roadmap goals.

(1) LNG-fueled vessels

A vessel powered by liquefied natural gas (LNG) used as fuel. Compared to conventional heavy oil, LNG fuel emits 30 percent less carbon dioxide (CO2), almost no sulphur oxides (SOx) or particulate matter (PM), and up to 80 percent less nitrogen oxides (NOx).

(2) LNG bunkering vessels

A vessel that provides LNG to LNG-fueled ships.

(3) Ballast water management systems

Ships use ballast water to provide stability during a voyage. Usually seawater is pumped into the tank when cargo is unloaded, and the seawater is then discharged at another port when cargo is loaded. Ballast water treatment equipment treats marine species carried in ships' ballast water and contributes to preserving biodiversity by preventing the transfer of aquatic organisms that could harm the marine environment.

(4) SOx scrubber system

A system that uses seawater and chemicals to remove sulfur from ship exhaust gases.

2. Process for project evaluation and selection

NYK considers a set of criteria when evaluating and selecting candidate green projects.

3. Management of proceeds

The net proceeds of the bonds will be allocated to the eligible projects. Unallocated proceeds will be kept in the form of cash or cash equivalents.

4. Monitoring and reporting

NYK will disclose the allocation of proceeds to eligible projects, along with positive environmental impacts, on the company's website and through the NYK Reports (Integrated Report) annually. NYK will publish the results of a post issuance review by a third-party annually until the net proceeds of the green bonds are fully allocated.

Report on Use of Proceeds

All proceeds of the bond has been allocated in October 2020.

  • Allocated to LNG-related investments (LNG-fueled vessels, LNG bunkering vessel): ¥8.6 billion
  • Allocated to regulation compliance-related investments (scrubbers, ballast water management systems): ¥1.4 billion
  • Percentage used for refinancing related to the above: 24%

Impact Report

  FY2018 FY2019
(1) LNG-fueled vessels 1 ship 2 ships
GHG emissions 35,730 mt per ship per year
GHG reduction rate 21%
CO2 reduction rate 30%
NOx reduction rate 30%
SOx reduction rate 99%
(2) LNG bunkering vessels 1 ship 1 ship
GHG emissions 3,647 mt per ship per year
GHG reduction rate 15%
CO2 reduction rate 30%
NOx reduction rate 76%
SOx reduction rate 99%
(3) BWMS 1 ship 2 ships
Volume managed 348,000 mt per ship per year
(4) SOx scrubber - 9 ships
SOx reduction rate 86% per ship
  • *The period in the Impact Report is from April 1 to March 31.
  • *The number of vessels above shows the cumulative number of vessels the proceeds have been allocated to and does not include ones under construction.
  • *The figures regarding environmental benefits are based on annual impact assumption model, of which formalized in Vigeo Eiris’ Second Party Opinion.
  • *Emissions of unburnt methane through handling and combustion of LNG are taken into consideration when calculating overall GHG emissions and its reduction rate.
  • *LNG-fueled vessels have no involvement in the controversial activities analysed by Vigeo Eiris.


NYK participates in a shipping industry working group established by the Climate Bonds Initiative*3 and cooperates in formulating evaluation criteria for green bonds issued by shipping companies.

  1. *3Climate Bonds Initiative
    The Climate Bonds Initiative: The Climate Bonds Initiative is an international, investor-focused not-for-profit working to mobilize bond markets for climate change solutions. The Initiative also provides a journal of record for relevant bond issuance, develops green bond evaluation criteria such as the Climate Bonds Standard, and provides policy proposals to government, finance, and industry sectors.