Japanese shipping company NYK on Wednesday (20 March) entered into a 9 billion yen (US $81 million) syndicated loan agreement in which the proceeds will be used solely for the purpose of funding scrubber installations.
This syndicated loan is the first “ESG (environmental, social, and governance) management support loan” for MUFG Bank and Mitsubishi UFJ Research and Consulting Co. Ltd.(MURC).
The remaining financial institutions involved in the loan included Aichi Prefectural Federation of Agricultural Cooperatives, Shinkin Central Bank, The Nishi-Nippon City Bank, Ltd., The Hiroshima Bank Ltd., The Musashino Bank Ltd., and The Yamaguchi Bank Ltd.
“This is Japan’s first syndicated loan to be certified by Japan Credit Rating Agency Ltd. (JCR) with its highest ranking of “Green 1,” thus demonstrating the loan to be aligned with the core components of the Green Loan Principles,” it says.
“NYK’s medium-term management plan includes the group’s intent to integrate ESG initiatives into management strategy by establishing new medium- to long-term environmental targets.
“To achieve these goals, NYK was the first company in the global shipping industry to issue labelled green bonds, and after that achievement in March 2018 the company received a green loan from Taiyo Life Insurance Company in December 2018.
“This new syndicated loan agreement is the third form of green financing for NYK for a total of over 20 billion yen.”
Photo credit: NYK
Published: 21 March, 2019
‘A drastic step-change is expected in 2020 and if a smooth transition is not ensured, the impact will be great,’ it notes.
The latest development means company is targeting to complete 34 scrubber installations by 2020.
‘We have selected to compete on the basis of vessels’ fuel consumption for the remaining part of our fleet.’
Recent bans and negative sentiment expressed in the press has created uncertainty about scrubbers.
Not all VLSFO are paraffinic and VLSFO has a 3% higher energy content, which is something to consider rather than only looking at the price per metric ton, it said.
Arab Petroleum Investments Corporation weigh effect of regulation on Gulf Cooperation Council countries.
‘Generally, you have to heat VLSFOs to prevent waxing, but the more you heat them the lower the shelf life is going to be,’ Dr Malcolm Cooper, the Group Managing Director of VPS, tells Manifold Times.
Current low prices for road and aviation fuels in September could mean another increase of flashpoint off-spec cases for MGO when players start introducing the products back into the bunker stream.
Some bunker suppliers at various ports have even achieved their sales target for the year; the trend doesn't seem to be slowing down and suppliers are expecting a boom during end of September.
The company has entered a memorandum of agreement with Millenium Satu Ltd to acquire the 7,550 dwt oil tanker to increase service flexibility; vessel will be paid over an installment period of 36 months.
Deloitte & Touche JMs believe IPP has a viable claim against Dr Goh Jin Hian for breaches of his director’s duties to act with skill, care and diligence which he owned to IPP, states court document.
An earlier MPA notice outlined precautionary measures for personnel to observe when conducting marine refuelling operations at port in order to minimise the risk of contracting Covid-19.
