In an effort to tackle climate crisis, Japan is targeting net-zero carbon emissions by 2050. This has led several Japanese financial institutions to sign up to the Poseidon Principles for sustainable ship finance with environmental targets.
The Poseidon Principles was launched in June 2019 in a bid to help the maritime industry reduce carbon emissions by aligning banking portfolios to the International Maritime Organization's sustainability targets.
Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Finance and Leasing, Shinsei Bank, MUFG Bank and the Development Bank of Japan are some of the finance houses that have signed up to the principles.
Asked if Iyo Bank would be joining, Yuya Wakimoto — head of treasury, investment and debt product at Iyo in Singapore — said the company was reviewing it but had no immediate plan to get aboard.
Iyo has participated in some of the sustainability linked loans involving Japanese shipowners, such as NYK Line.
The bank is hoping to engage in more green ship financing deals that align with its own environmental, social, and governance policy.
In March, Iyo was one of the lenders for Hafnia’s first green financing deal that involved a $374m loan.
Wakimoto has been involved in ship financing at Iyo for the past seven years. He joined the Singapore office in April.
“I am familiar with the clients in Singapore as I have covered them when I was in Japan,” said Wakimoto. “Our branch office has around 20 employees that includes the back-office staff. We have four relationship managers that are looking after the shipping clients.”
Describing himself and his team as the “second generation” at Iyo Singapore, Wakimoto said they are currently reviewing both business practices and strategy.
“Currently, Iyo has not carried out any financing for LNG carriers but we should not rule out this ship type,” he said.
