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.
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Summary of Transition Bonds
|Name||NYK Unsecured Corporate Bonds No. 43 (Transition Bond)||NYK Unsecured Corporate Bonds No. 44
|Issue date||July 29, 2021|
|Pricing date||July 21, 2021|
|Maturity||5 years||7 years|
|Issue Amount||10 billion yen||10 billion yen|
|Coupon Rate||0.26% per annum||0.38% per annum|
|Use of Proceeds||New and existing projects referenced in “Our Business Development Timeline in the Energy Field” in the NYK Group ESG Story
Offshore-wind support vessels, ammonia-fueled vessels, hydrogen fuel-cell vessels, LNG-fueled vessels, LNG-bunkering vessels, LPG-fueled vessels, improvement of efficiency and optimization in vessel operation
|Credit ratings||A- (Japan Credit Rating Agency, Ltd.)|
Second Party Opinion
NYK has developed the Green/Transition Bond Framework (hereinafter, "this framework"). This framework has obtained a second party opinion from DNV Business Assurance Japan Co. Ltd. as an independent external reviewer that this framework is aligned with the Green Bond Principles 2021 (ICMA), Green Bond Guidelines 2020 (Ministry of the Environment, Japan), Climate Transition Finance Handbook 2020 (ICMA), and Basic Guidelines on Climate Transition Finance (May 2021) (Financial Services Agency, Japan; Ministry of Economy, Trade and Industry, Japan; and Ministry of the Environment, Japan). NYK will issue the green/transition bonds under this framework.
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Model Case Selection for Transition Finance
The issuance has been selected as the first model case for transition finance by Japan’s Ministry of Economy, Trade and Industry.
List of NYK Transition Bond Investors
Investors who have emphasized the significance of NYK's transition bond issuance and have committed to investing (as of July 21, 2021)
- Fukoku Mutual Life Insurance Company
- BIHOKU SHINKIN BANK
- Midori Life Insurance Co., Ltd.
- Boso Shinkumi
- The Dai-ichi Frontier Life Insurance Co., Ltd.
- DaitokyoShinkumi Credit Cooperative
- The Dai-ichi Life Insurance Company, Limited
- Danyo Shinkumi Bank
- Saison Automobile and Fire Insurance Company, Limited
- JA Fukuoka Shinren
- THE DAIDO FIRE AND MARINE INSURANCE CO., LTD.
- The Gamagori Shinkin Bank
- The Toa Reinsurance Company, Limited.
- THE GIFU SHINKIN BANK
- Asset Management One Co., Ltd.
- Himifusiki Shinkin Bank
- Sumitomo Mitsui Trust Asset Management Co., Ltd.
- The Hiroshimashi Credit Cooperative
- Mitsubishi UFJ Trust and Banking Corporation
- Hokkaido Labour Bank
- Meiji Yasuda Asset Management Company Ltd.
- Hokuriku Labour Bank
- Nissay Asset Management Corporation
- The Hyogoken Credit Cooperative
- Sumitomo Mitsui DS Asset Management Company, Limited
- HYOGOKEN IRYO CREDIT UNION
- Tokio Marine Asset Management Co., Ltd.
- AICHICHITA AGRICULTURAL COOPERATIVE ASSOCIATION
- Shinkin Central Bank
- Fujinomiya Japan Agricultural Cooperatives
- The Aichi Bank, Ltd.
- JA FUKAYA
- The Ashikaga Bank, Ltd.
- JA IZUNOKUNI
- The First Bank of Toyama,Ltd.
- Kawanoe Shinkin Bank
- North Pacific Bank, LTD.
- THE KURE SHINKIN BANK
- THE ALUPUSCHUO SHINKIN BANK
- THE MISHIMA SHINKIN BANK
- ASAHIKAWA SHINKIN BANK
- Moka Credit Union
- THE FUJI SHINKIN BANK
- Nagano Prefectural Credit Federation of Agricultural Cooperatives
- FUKUI SHINKIN BANK
- Niigata credit union
- HANDA SHINKIN BANK
- Nishihyogo Shinkin Bank
- Hanno Shinkin Bank
- OGAKISEINO SHINKIN BANK
- IBARAKI Prefectual Credit Federations of Agricultual Cooperatives
- OHTAWARA SHINKIN BANK
- Ichinoseki Shinkin Bank
- Osaka Shinkin Bank
- JA KAMOTO
- The SAGAMI Shinkin Bank
- The Kita Osaka Shinkin Bank
- The Seto Shinkin Bank
- The Kobe Shinkin Bank
- Shiga Kenmin Shinkumi Bank
- Mie Prefecture credit federation of agricultural cooperatives
- SHOWA SHINKIN BANK
- THE MIZUSAWA SHINKIN BANK
- TAKAMATSU SHINKIN BANK
- Nihonkai Shinkin Bank
- Takaoka Shinkin Bank
- THE NUMAZU SHINKIN BANK
- The IO Shinkin Bank
- Ome Shinkin Bank
- THE CHOSHI SHINKIN BANK
- The Seiwa Credit Cooperative
- THE HEKIKAI SHINKIN BANK
- Iizuka Shinkin Bank
- The Sugamo Shinkin Bank
- THE JOHOKU SHINKIN BANK
- TOKYO BAY SHINKIN
- NAGANO SHINKIN BANK
- Tokyo City Shinkin Bank
- The Sawayaka Shinkin Bank
- TSURUOKA SHINKIN BANK
- SHINONOME SHINKIN BANK
- THE YAMATO SHINKIN BANK
- TOKACHI SHINKUMI
- IZAWA METAL CO., LTD.
- TOSHUN SHINKIN BANK
- Kojimachi kyousaikai
- Tsu Shinkin Bank
- TECHNO RYOWA LTD.
- The Tsuru Credit Cooperative
- THE JAPAN CARGO TALLY CORPORATION
- Manulife Investment Management (Japan) Limited
- ICOM INCORPORATED
- JAPAN POST INSURANCE Co., Ltd.
- The Japan Economic Research Institute
- THE SHIZUOKA CHUO BANK, LTD.
- Osaka City Employees’ Mutual Aid Association
- THE SAGA KYOEI BANK, LTD.
- Seinan Gakuin Educational Foundation
- Aichi Shinkin Bank
- School Corporation Seishin Joshi Gakuin
- AICHI POLICE CREDIT UNION
- SHIBAURA TSUSEN Co.,Ltd.
Summary of the Green/Transition Bond Framework
1. NYK Group GHG Emissions Intensity Reduction Targets
In the NYK Group ESG Story (released in February 2021), The NYK Group’s GHG emissions intensity reduction targets (Base line: 2015) are indicated below.
Improvements in intangible aspects of ship operations, tangible improvements in ships, and fuel conversion are expected to result in GHG emission reduction benefits (30% less) by fiscal 2030. To achieve the 50% reduction target by fiscal 2050, the introduction of zero-emission ships will be essential, and we are setting our sights on the adoption of new technologies to this end.
2. Use of Proceeds
NYK plans to allocate the proceeds from green/transition bonds to finance new and existing investments related to eligible projects, such as those indicated below.
・Green Projects (Funds raised by green bonds and transition bonds can be allocated)
Renewable energy (offshore wind power, green terminals), ammonia-fueled vessels, hydrogen fuel-cell vessels
・Transition Projects (Funds raised by transition bonds can be exclusively allocated)
LNG-fueled vessels, LNG bunkering vessels, LPG-fueled vessels, operation efficiency & optimization
Post Issuance Review by Third-Party
Report on Use of Proceeds
All bond proceeds had been allocated by May 2022.
① Allocated to LNG-fueled Vessels: ¥11.6 billion
② Allocated to LPG-fueled Vessels: ¥8.4 billion
- *¥6.9billion out of above ¥20billion was used for refinancing
As of July 2022, one of the LNG-fueled vessels had already been completed. Construction of all the other vessels are on schedule, and they are going to be completed by November 2023,
|（1）LNG-fueled vessels||2 ships|
|GHG emissions||36,580 mt / ship / year|
|CO2 reduction rate||28%|
|NOx reduction rate||75%|
|SOx reduction rate||99%|
|（2）LPG-fueled vessels||2 ships|
|GHG emissions||36,980 mt / ship / year|
|CO2 reduction rate||15%|
|SOx reduction rate||99%|
- *The reduction rates above are theoretical values compared with a conventional heavy oil-fueled vessel.
- *The period in the Impact Report is from July 2021 to March 2022.