Nippon Yusen Kabushiki Kaisha : NYK to Issue Transition Bonds and Green Bonds
April 10, 2024 at 03:03 am
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Apr. 10, 2024
Boosting Ship Fuel Conversion from a Financing Perspective
NYK will issue its 47th unsecured corporate bonds (transition bonds) and 48th unsecured corporate bonds (green bonds) in the Japanese domestic market in early April. This will be NYK's second green bond issuance since May 2018 and third transition bond issuance since July 2023.
NYK will issue the bonds to accelerate ESG management advocated in the company's medium-term management plan "Sail Green, Drive Transformations 2026 - A Passion for Planetary Wellbeing -". NYK will use the funds raised by the transition bonds for projects aligned with the company's long-term transition strategy toward decarbonization (transition projects), such as LNG-fueled vessels. On the other hand, the funds generated by the green bonds will be used for projects that mitigate global warming (green projects), such as ammonia-fueled ammonia carriers to be built through the Green Innovation Fund.
NYK issued the shipping industry's first green bonds in 2018 and Japan's first transition bonds in 2021. The company will continue to promote ESG finance and aim to have its growth strategy based on ESG management.
Bond Summary
Name
NYK Unsecured Corporate Bond No. 47
(Transition Bonds)
NYK Unsecured Corporate Bond No. 48
(Green Bonds)
Issuing Entity
NYK (Nippon Yusen Kaisha)
Maturity
5 years
10 years
Issue Amount
200 billion yen maximum
100 billion yen
Pricing Date
Early April 2024
Use of
Proceeds
New and existing projects referenced in "Vessel fuel conversion scenario towards 2050" from NYK's medium-term management plan
LNG-fueled vessels, etc.
Ammonia-fueled vessels, etc.
Second-Party Opinion
DNV Business Assurance Japan K.K*
Lead Managers
Mitsubishi UFJ Morgan Stanley Securities Co. Ltd., Nomura Securities Co. Ltd., SMBC Nikko Securities Inc., Daiwa Securities Co. Ltd.
Structuring Agent
Mitsubishi UFJ Morgan Stanley Securities Co. Ltd.
* DNV Business Assurance Japan K.K
Prior to the execution of the green/transition financing, NYK obtained a second-party opinion from DNV in January regarding NYK's financial framework. NYK also obtained an annex to the second-party opinion concerning the use of proceeds of transition bonds and green bonds and the eligibility of reporting.
NYK-GreenTransition-Finance-Framework
Second Party Opinion on NYK Line green and transition finance frame work
Related Sustainable Domestic Goals (SDGs)
Related Press Releases
Jan.29,2023, NYK Secures First Transition Syndicated Loan Financing
Jun.23,2023, NYK to Issue Second Series of Transition Bonds
Jul. 30, 2021, NYK Issues First Transition Bonds in Japan
Apr. 17, 2018, NYK to Issue Green Bonds
This press release has been prepared for the sole purpose of publicly announcing the Company's issuance of the bonds and not for the purpose of soliciting investment or engaging in any other similar activities within or outside Japan
News Releases 2024
The news on this website is as of the date announced and may change without notice.
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10 April 2024 02:02:04 UTC.
Nippon Yusen Kabushiki Kaisha (NYK Line) is one of the world's largest transport and logistics services providers. Net sales break down by activity as follows:
- bulk sea transport (42.7%): dry bulk, vehicles, oil products transport, etc.;
- containers sea transport (37.1%). The group also develops a containers terminals operation activity;
- logistics services (8.2%): storage, warehousing, delivery services, etc.;
- freight air transport (7.8%);
- other (4.2%): primarily real estate management, ships maintenance and repair.
At the end of March 2022, the group had a fleet of 658 vessels.