According to the Sustainability-Linked Loan (SLL) market status report published by the Ministry of Environment's Green Finance Portal, Japan's first SLL was confirmed in 2019, with steady growth following the establishment of guidelines in March 2020.
Domestic SLL issuance has shown remarkable growth from 550 billion yen in 2019 to a record high of 685 billion yen in 2023. Subsequently, issuance reached 506 billion yen in 2024 and 203.4 billion yen as of August 8, 2025. Most transactions were yen-denominated, with a notable 854 million USD foreign currency deal recorded in 2021. Exchange rate conversions used fixed rates (1 USD=110 yen, 1 EUR=135 yen, 1 AUD=90 yen) for 2014-2023 and Bank of Japan's official rates from 2024 onwards.
A distinctive feature is that SLL transactions based on frameworks established by financial institutions totaled 403.9 billion yen across 1,753 deals. Among these, 81.3 billion yen across 730 deals involved only comprehensive framework third-party evaluations without individual transaction assessments. Additionally, transactions under frameworks established by local governments and similar entities amounted to 21.2 billion yen across 128 deals.
Internationally, SLL issuance has expanded significantly driven by the global proliferation of ESG investment. Based on Environmental Finance database data, global SLL issuance trends show clear regional growth patterns, confirming continued expansion of the global SLL market.
These statistics are compiled by the Ministry of Environment based on information published by fund raisers, financial institutions, and third-party evaluation agencies, principally following self-reported labeling by issuers and financial institutions. Transactions with undisclosed amounts are counted only in volume, not included in total issuance amounts.