- May 20, 2022
- May 13, 2022
- May 12, 2022
September 22, 2021
These terms and conditions prescribe the principles for the Bank of Japan's funds-supplying operations to support financing of the private sector for their efforts on climate change (i.e., open market operations through which the Bank provides loans against eligible collateral within the amount outstanding of investment or loans by eligible counterparties to contribute to Japan's actions to address climate change).
The Bank's Head Office (Operations Department) or its branches.
Loans shall be provided in the form of electronic lending.
The duration of each loan shall be one year in principle. Loans may be provided successively as the Bank shall disburse new loans on the maturity date of the existing loans.
The interest rate on loans shall be 0 percent per annum.
Counterparties of each loan shall be eligible counterparties that wish to receive loans.
The maximum amount of loans for each counterparty shall be equivalent to the amount outstanding of investment or loans by counterparties to contribute to Japan's actions to address climate change, with a remaining maturity of 1 year or more at the time determined at each loan disbursement pursuant to the Bank's relevant rules.
The investment or loans that contribute to addressing climate change shall be those that counterparties themselves determine to satisfy either (1) or (2) below.
Each counterparty shall, pursuant to the Bank's relevant rules, disclose its criteria used to determine which investment or loans contribute to addressing climate change.
The amount extended to each counterparty for each loan shall be the amount the counterparty wishes to receive within the maximum amount prescribed in 8. However, it shall not exceed the unused value of total standing pool of eligible collateral pledged to the Bank at the time of loan disbursement.
With a view to conducting the Climate Response Financing Operations smoothly, the Bank shall determine the date and other necessary specifics at each loan disbursement.
These terms and conditions shall become effective today and shall be valid through March 31, 2031, unless the smooth conduct of market operations is interfered with. To the loans that are disbursed on or before March 31, 2031, these terms and conditions shall be applied until their maturities.