ORIX Begins Providing Sustainability-Linked Loans for Ship Finance
Feb 17, 2022
TOKYO, Japan - February 17, 2022 - ORIX Corporation (“ORIX”) announced today that it has reached agreement and signed a contract with a shipowner in Hong Kong to provide a sustainability-linked loan 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”*1 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.
*1 ORIX Establishes Group-wide ESG-Related Material Issues, Key Goals and Sustainability Committee (November 4, 2021)
*2 ORIX Places First Order for TESS66 AEROLINE, the Most Advanced Eco-ship from TSUNEISHI SHIPBUILDING (July 19, 2021)
|Two Panamax Bulkers built by TSUNEISHI SHIPBUILDING (ZHOUSHAN)
|Use of funds
|Refinancing of existing loan
|Approximately USD 21million
Investor Relations and Sustainability Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 28 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of September 30, 2021)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2020 – March 31, 2021.”
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