Japanese ship operator NYK Line which has interests across several ship sectors, has announced that it has inked a JPY nine billion ($81Mn) syndicated loan agreement with a consortium of eight financial institutions led by MUFG Bank.
In announcing the loan NYK said it would be used solely for the purpose of funding environment-friendly projects and more specifically the installation of scrubbers on board its vessels. 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.
In announcing the loan, NYK did not specify which ships or scrubber systems were involved although it has previously installed Wartsila scrubbers on Handymax vessels.
While some complain that scrubbers merely transfer pollution from air to sea, Japan’s official position as highlighted during recent presentations to IMO sub-committee meetings is that the process is relatively harmless and has a more beneficial effect on human health than the alternatives available to meet 2020 IMO rules