March 12, 2021
Kawasaki Kisen Kaisha, Ltd.
“K” LINE is pleased to announce that we have arranged operating lease for the Next-Generation Environmentally-Friendly LNG-fueled Car Carrier through Climate Transition Loan with Mizuho Bank Ltd. (MHBK) and Sumitomo Mitsui Trust Bank Ltd. (SMTB). This loan is recognized as the very first Climate Transition Finance in Japan. The loan was evaluated by Japan Credit Rating Agency, Ltd.(JCR) in line with the Climate Transition Finance Handbook published by the International Capital Markets Association(ICMA) and it acquired the highest recognition, Green1 (T), as an overall evaluation.
The concept of Climate Transition Finance is to accelerate the efficient flow of financing to the companies, which address climate change risk as material issues for its core business activities and to do non Business As Usual Efforts in order to achieve its GHG emission reduction target to contribute to the global goals for decarbonization.
“K” LINE is one of the most advanced companies in the world to set long-term decarbonization goals. It established its long-term decarbonization roadmap in very early stage in 2015 ahead of its peers and even ahead of global GHG emission reduction goals set by International Maritime Organization (IMO) in 2018.
With this long-term decarbonization roadmap, “K” LINE Environmental Vision 2050, we are accelerating the initiatives toward minimizing all environmental impacts generated by our business activities. In the roadmap, as 2030 interim milestones, we set CO2 emission efficiency improvement by 50% over 2008, which is beyond IMO target of 40%, and pursuance of transporting and supplying new energy for a low-carbon society. This Next-Generation Environmental Friendly LNG-fueled Car Carrier is one of the concrete action plans for achieving these milestones, and is officially supported by the Ministry of the Environment and Ministry of Land, Infrastructure, Transport and Tourism as “a model business using alternative fuels to reduce ship CO2 emissions”.
As an environmental front runner, aiming for the realization of sustainable society in which more people throughout the world can enjoy the benefits of more environmentally-friendly and highly- efficient marine transportation, we continue to adopt ESG/SDGs finance in order to disseminate our initiatives to a wide range of stakeholders through the refinement of our strengths, “Safety”, “Environment”, and “Quality”.
<Outline of finance>
|
Finance scheme |
Operating lease |
|
Charterer |
“K” LINE |
|
Owners/Borrowers |
Leasing companies’ SPC |
|
Agreement date |
March 10, 2021 |
|
Loan amount |
About JPY 5.9 billion |
|
Loan arranger |
MHBK |
|
Loan co-arranger |
SMTB |
|
Transition structuring agent |
MHBK, Mizuho Securities Co., Ltd., SMTB |
|
Lenders |
MHBK, SMTB |
|
Use of proceeds |
Purchase of the Next-Generation Environmentally- Friendly LNG-fueled Car Carrier |
|
Evaluator |
Japan Credit Rating Agency, Ltd. |
|
Overall evaluation |
Green 1(T) |
<Related Links>
“K” LINE Environmental Vision 2050 - Blue Seas for the Future -
https://www.kline.co.jp/en/sustainability/environment/management.html
Delivery of Next-generation Environmentally Friendly Car Carrier Fueled by LNG “CENTURY HIGHWAY GREEN”
https://www.kline.co.jp/en/news/car/car-20210312.html
Japan Credit Rating Agency, Ltd. website
https://www.jcr.co.jp/en/
※ “K” LINE Group, as a participant in the United Nations Global Compact, is promoting activities that contribute to SDGs (Sustainable Development Goals), and this project is a part of its ongoing activities.
