February 27, 2023
Kawasaki Kisen Kaisha, Ltd.
Kawasaki Kisen Kaisha, Ltd. (President & CEO: Takenori Igarashi; “K” LINE) signed a commitment line agreement (Agreement) utilizing the Mizuho Natural Capital Impact Finance scheme (the Financing Scheme)*1 and arranged through a syndicate led by Mizuho Bank, Ltd. (President & CEO: Masahiko Katō; Mizuho Bank). This is the first case in which this Financing Scheme has been utilized in the maritime industry.
The Financing Scheme is a loan program provided by Mizuho Bank based on an assessment methodology developed by Mizuho Research & Technologies, Ltd. (President & CEO: Masatoshi Yoshihara; Mizuho Research & Technologies), which incorporates the TNFD’s and other frameworks related to natural capital. The methodology is used to evaluate companies’ commitment to and initiatives for nature-positive management.*2 “K” LINE has been proactively addressing environmental issues that are unique to the shipping industry, including the prevention of oil pollution, the reduction of the emission of pollutants into the atmosphere, ballast water management, marine biodiversity conservation, and the mitigation of the industry’s impact on marine mammals. The recognition of these efforts contributed to the conclusion of the Agreement.
Furthermore, the framework of the Financing Scheme, including its assessment methodology, has been reviewed by Japan Credit Rating Agency, Ltd. (JCR), which issued a second-party opinion confirming its alignment with the Ministry of the Environment’s Basic Guidelines on Impact Finance.*3 During the development of the framework, the United Nations Development Programme (UNDP) provided expert advice.
The signing of the Agreement is an important “K” LINE Environmental Vision 2050 milestone, particularly regarding the expansion of initiatives for conserving the environment, including natural capital.
Under the Agreement, “K” LINE will establish multiple KPIs based on the Financing Scheme’s principles and the results of its assessment, and it will enhance its ongoing natural capital conservation initiatives that will be regularly monitored by Mizuho Research & Technologies and Mizuho Bank, which will provide feedback.
Overview of the Agreement:
|
Name of Financing Scheme |
Mizuho Natural Capital Impact Finance |
|
Borrower |
“K” LINE |
|
Loan Amount |
JPY 10 Billion |
|
Loan Tenor |
5 Years |
|
Date of Agreement |
27 February 2026 |
|
Loan Arranger |
Mizuho Bank |
|
Loan Co-Arranger |
Sumitomo Mitsui Trust Bank Ltd. (SMTB) |
|
Lenders |
The Iyo Bank, Kansai Mirai Bank, The San-in Godo Bank, Shinkin Central Bank, The Norinchukin Bank, The Hyakujushi Bank, Hyogo Prefectural Federation of Credit Cooperatives, Mizuho Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, MUFG Bank, The Yamaguchi Bank, The Bank of Yokohama, and others |
*1 Mizuho Natural Capital Impact Finance
Press Release dated February 28, 2025 (Japanese)
Commencement of Handling of Mizuho Natural Capital Impact Finance
https://www.mizuhobank.co.jp/release/pdf/20250228release_jp.pdf
*2 Nature-Positive Management
In the Nature Positive Economy Transition Strategy jointly formulated by the Ministry of the Environment, the Ministry of Agriculture, Forestry and Fisheries, the Ministry of Economy, Trade and Industry, and the Ministry of Land, Infrastructure, Transport and Tourism, “nature-positive management” is defined as management that positions the concept of nature conservation as a material issue within a company’s value creation process.
*3 JCR’s website
Sustainable Finance (Green Bonds, Green Loans, Sustainable Bonds) | Japan Credit Rating Agency, Ltd. - JCR
