Green Bond Fact Sheet

NYK - Nippon Yusen Kaisha

Date: 30-May-2018

Issue date: 24-May-2018 Maturity date: 24-May-2023 Tenor: 5Issuer Name

NYK – Nippon Yusen
KaishaAmount Issued

JPY10bn (USD91.5m)

Country of riskJapan

CBI Database

Included

Issuer Type1

Non-FinancialCorporate

Bond TypeGreen Bond

Green Bond Framework

N/A

Second party opinion

Vigeo Eiris

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☐ Energy☐ Solar☐ Onshore wind
☐ Offshore wind
☐ Geothermal☐ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energyperformance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☒ Transport☐ Electric vehicles☐ Low emissionvehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☒ Shipping☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewatertreatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Land use & agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose, paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

Proceed allocation and impact reporting will be made available on the issuer’s website
annually until full allocation.

Company information

NYK provides ocean, land, and air transportation services worldwide. It offers various
logistics services, including liner trading services, such as container shipping, and terminaland stevedoring services for containerships, car carriers, and cruise ships; and air cargotransportation services.

Firsts, records andcertificationsFirst shipping GB

Proceeds description

Proceeds will finance and refinance LNG-fuelled ships, LNG-bunkering ships, ballast
water management systems and SOx scrubber systems. Vigeo Eiris provided thesecond party opinion and stated “LNG is the best available option for full scale
application to reduce emissions in the global shipping industry, especially for longdistance navigation purposes”.

Climate Bonds viewThe decision to include the bond in our green bond database hinges on GHG
emission reductions and NYK's adoption of fuel efficiency optimisation alongside
the switch to LNG, measures to keep methane leakage to an absolute minimum
and a commitment to provide impact reporting using operational data. On its own,
the switch to LNG does not provide sufficient emission cuts. Renewable fuels are
not yet a commercially viable option for long-haul shipping, so best practice would
be to incorporate flexibility at the design stage to easily retrofit the vessels to run
on renewable fuel in the future, i.e. to avoid lock-in of fossil fuel technology. Thedecision to include this bond was not a simple one – our special briefing provides
details.
Climate Bonds is currently establishing a technical and an industry working group
to develop specific eligibility requirements for shipping-related green bonds.

Underwriters

MUFJ, Nomura

Deal comments
Credit Rating
Pricing summary
Investors summary

A (JCR)

1

Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign