ORIX begins providing sustainability-linked loans for ship finance

Under this sustainability-linked loan, a standard value is set for the annual CO2 emissions of the vessels to be financed, and if the annual CO2 emissions of the vessels after the loan has been granted is below the standard value, a preferential interest rate is given for the following year.

CO2 emissions will be calculated by Nippon Kaiji Kyokai (ClassNK) to ensure objectivity and fairness. This is ORIX’s first initiative of ship finance supporting sustainability and the decarbonization of marine transportation through finance.

ORIX began a secondhand ship leasing business in Japan in the latter half of the 1960s and has been carrying out ship finance internationally since the first half of the 1970s. For more than 50 years, ORIX has been acquiring shipping-related expertise from ship finance, investment (owning and operations), sale & purchase and brokerage, including through the establishment in 1977 of Perseus Shipping Co., Ltd. (now ORIX Maritime Corporation), a company which operates vessels. Currently, ORIX owns a number of vessels, mainly bulk carriers, and provides them to first-class companies such as grain trading houses and power companies worldwide.

Last year, ORIX Group established new ESG-related “Material Issues” and “Key Goals” as part of its initiatives to promote sustainability.
Some of ORIX’s other initiatives in the ship business include placement of an order for an eco-ship*2, reducing food loss at sea, and the provision of donations to Filipino crew members affected by typhoons. ORIX will continue to use the experience and expertise it has cultivated to promote initiatives that lead to sustainability, such as the decarbonization of marine transportation.