The Bank of Japan will pump ¥13.98tn (13,981.2 billion yen) into commercial lenders on July 21, 2026, under its Funds-Supplying Operations to Support Financing for Climate Change Responses. The loan matures exactly one year later, on July 21, 2027, and was announced at a 9:30am auction on July 17.
The facility offers financial institutions low-cost, BOJ-backed funding earmarked for green and transition lending. Eligible borrowers include the central organizations of financial cooperatives acting on behalf of member institutions that lack a direct current account with the Bank, a detail that widens the program's reach beyond the largest banks.
Once this round settles, the outstanding balance of loans under the climate program will stand at ¥24.94tn (24,936.1 billion yen) as of July 21, 2026. That balance reflects the stock of climate-support loans currently on the Bank's books after this disbursement, not a net new addition on top of prior facilities that may be maturing on a rolling basis.
| Item | Detail |
|---|---|
| Auction announcement | July 17, 2026, 9:30am |
| Loan disbursement date | July 21, 2026 |
| Maturity date | July 21, 2027 |
| Amount disbursed, this round | ¥13.98tn (13,981.2 billion yen) |
| Outstanding balance after settlement | ¥24.94tn (24,936.1 billion yen) |
Why this matters for business readers is straightforward: the BOJ is still using a dedicated monetary tool to subsidize the funding cost of green and transition lending, even as it manages a broader normalization of interest-rate policy. Banks that draw on the facility get one-year money at rates cheaper than they would otherwise pay, which lowers the cost of underwriting loans tied to decarbonization projects, energy transition capital expenditure, and related lending categories the BOJ has designated as eligible.
What the release does not say is equally important. The Bank's announcement covers only the mechanics of this operation, size, dates, and the resulting outstanding balance, without disclosing which institutions drew funds, how much of the money will flow into new green loans versus refinancing existing exposure, or what specific projects the facility is expected to support. Readers should treat the ¥13.98tn figure as a funding-cost subsidy mechanism, not as a direct measure of new climate lending volume in the economy.
The next data point to watch is whether the outstanding balance continues to climb at future auction rounds, which would indicate financial institutions are sustaining, rather than winding down, their draws on the facility as it approaches any future review of terms.