Daito Corporation secures green loan
Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that Daito Corporation (Daito), its consolidated subsidiary, has decided to procure funding through a green loan from Mizuho Bank, Ltd.
This loan will finance the construction of an electric tugboat (EV tug),*1 which was decided on November 8, 2024. It is scheduled to be completed in May 2027. The loan utilizes the Port of Yokohama – CNP Sustainable Finance Framework (the Framework),*2 established by the City of Yokohama.
The Framework is a use-of-proceeds specific framework aimed at promoting the decarbonization of the port. A Second Party Opinion*3 on the Framework has been obtained from DNV Business Assurance Japan K.K. (DNV), a third-party verification body. The construction of the EV tug is classified as a green project under “Clean Transportation” within the Framework, and a letter of conformance*3 for a green loan*4 has been obtained from DNV. Daito is the first company to utilize this Framework for financing. Moreover, this is the first case in Japan of a private company utilizing a use-of-proceeds specific framework developed by a municipality.
This vessel was highly valued for the integration of hull improvements, electrification, and new maneuvering equipment to achieve a transition to non-fossil energy and improve operational efficiency. The adoption of lithium-ion batteries as a non-fossil energy source is expected to achieve a CO2 emission reduction of approximately 60%.
The “K” LINE Group, under its long-term environmental policy, “K” LINE Environmental Vision 2050 — Blue Seas for the Future —,*5 establishes and operates the DRIVE GREEN NETWORK framework to promote environmental management, reflecting its commitment to environmental conservation. It will continue to advance efforts to support low-carbon and carbon-free for “K” LINE group and society and contribute to enhancing people’s quality of life.
