NYK Group has signed a $300m syndicated loan to support its green transition framework.
The loan involves 21 financial institutions headed by Japan’s largest bank MUFG Bank, which is acting as arranger and agent.
The supporting banks are mostly based in Asia, including the Agricultural Bank of China and the China Construction Bank Corporation.
A number of Japanese regional banks are also involved in the project including Gunma Bank, Iyo Bank and Shikoku Bank.
NYK said the funds would be used for new and existing projects involving LNG, LPG and ammonia-fuelled vessels as part of its medium-term management plan.
Funds will also be allocated for offshore vessels supporting renewable energy projects and investments in green terminals.
Operational efficiency projects will also benefit.
TradeWinds has reported that NYK placed an order for a 40,000-cbm ammonia carrier at Nihon Shipyard that will be the first to be powered by a Japanese-built ammonia-fuelled engine.
NYK, which owns and operates a fleet of more than 600 vessels, is aiming to achieve a 45% reduction in Scope 1 and Scope 2 emissions by 2030, compared to 2021 levels. In the longer term, it is aiming to achieve net-zero carbon emissions by 2050.
From 2030 onwards, it hopes to achieve its targets through the use of alternative fuel vessels.
By 2030, it plans to invest ¥450bn ($3bn) in decarbonisation.
