NYK granted Japan’s first sustainability linked loan
On November 29, MUFG Bank Ltd. granted NYK a syndicated sustainability-linked loan, Japan's first advanced loan that allows for conditions such as the loan’s interest rate to be adjusted according to the borrower’s CSR performance, NYK said in a press release.
This loan encourages sustainable economic activities and growth by linking loan pricing to company performance, which is determined by the score provided by CDP* annually. As long as high CDP ratings are maintained, the company’s CDP score will not cause the loan’s interest rate to change prior to the repayment deadline.
In accordance with the new medium-term management plan “Staying Ahead 2022 with Digitalization and Green” announced in 2018, NYK integrated ESG principles into management strategies to drive the sustainable development of society and enrichment of the company's corporate value. In fact, NYK achieved a place on the Climate Change A List in 2018. About 7,000 companies publicly disclose environmental information through CDP yearly, and 139 companies are on its A List, including 20 Japanese companies and NYK.
The purpose of this loan is for NYK to promote its ESG management and motivate the company to maintain a high CDP score by responding to climate change through business activities.