Japanese shipping major Kawasaki Kisen Kaisha, Ltd. (K Line) has signed a transition-linked loan (TLL) with syndicated lenders, arranged by Mizuho Bank Ltd. (MHBK).
As informed, the loan has a term of 5 years and amounts to JPY 110 billion (around $991 million).
“In this TLL’s finance scheme, we have set 3 sustainability performance targets (SPTs) in line with our transition strategies for decarbonization and linked them with a prefixed loan interest matrix,” K Line said.
Specifically, target SPTs are:
- Total emission of GHG,
- CO2 emission per ton-mile,
- CDP rating.
“This scheme brings us incentives on our decarbonization activities as well as accelerating and contributing to the global goal for decarbonization.”
This TLL is the company’s second transition finance since its 1st transition loan in March 2021.
The loan was agreed in accordance with the “Transition Linked Finance Framework (Framework)” which is based on K Line Environmental Vision 2050 announced September 6, 2021.