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NYK Secures First Transition Syndicated Loan Financing

On January 26, NYK concluded a syndicated loan (the "Loan") agreement with MUFG Bank and others. The Loan is NYK's first transition loan1 based on the NYK Green/Transition Finance Framework2 (the "Framework"). Twenty-one financial institutions from Japan and overseas that support NYK's ESG management participated in the loan. Proceeds will be used for projects to reduce greenhouse gas emissions, such as constructing next-generation fuel vessels.

NYK concluded the Loan to accelerate ESG management advocated in NYK’s medium-term management plan “Sail Green, Drive Transformations 2026 - A Passion for Planetary Wellbeing-.“ Securing various funding resources for decarbonization solutions will help NYK to accelerate its greenhouse gas emission reduction. NYK issued the shipping industry’s first green bonds in 2018 and Japan's first transition bonds in 2021. NYK will continue to promote ESG finance and aim to have its growth strategy based on ESG management.

Outline of the Loan

Agreement date January 26, 2024
Borrower NYK Line
Arranger and agent MUFG Bank,Ltd.
Creditors Twenty-one financial institutes, including MUFG Bank,Ltd.3
Loan payable 300 million US dollars
Use of proceeds New and existing projects referenced in "vessel fuel conversion scenario towards 2050" in NYK's medium-term management plan.
LNG-fueled vessels, LPG-fueled vessels
Second-party opinion DNV Business Assurance Japan K.K4

1 Transition Loan
Loans will be used to invest in projects meeting the company's long-term transition strategy to reduce greenhouse gas emissions.

2 NYK Green/Transition Finance Framework
NYK has established green/transition financing criteria involving the use of proceeds, evaluation, selection of projects, and management and reporting of funds raised.

3 Creditors
Agricultural Bank of China Ltd., Tokyo Branch; Bank of Communications Co., Ltd., Tokyo Branch; Bank of Taiwan, Tokyo Branch; China Construction Bank Corporation, Tokyo Branch; E. SUN Commercial Bank Ltd., Tokyo Branch; Hana Bank, Tokyo Branch; Industrial and Commercial Bank of China Ltd., Tokyo Branch; MUFG Bank,Ltd.; PT. Bank Negara Indonesia (Persero) Tbk, Tokyo Branch; Resona Bank, Limited; SBI Shinsei Bank, Limited; The 77 Bank, Ltd.; The Ashikaga Bank, Ltd.; The First Bank of Toyama, Ltd.; The Gunma Bank, Ltd.; The Hachijuni Bank, Ltd.; The Iyo Bank, Ltd.; The Joyo Bank, Ltd.; The Keiyo Bank, Ltd.; The Nishi-Nippon City Bank, Ltd.; The Shikoku Bank, Ltd.

4 DNV Business Assurance Japan K.K. has performed a third-party evaluation, and a second-party opinion on the framework has been obtained.

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