Kansai Electric Power Co. is planning to raise an additional ¥670 billion through bank loans and issuing commercial paper by March 31, which would bring its total amount of funds raised in fiscal 2011 to more than ¥1 trillion, sources said.
Around 75 percent of the loans will be provided by leading domestic banks and the government-backed Development Bank of Japan, the sources said.
Kansai Electric's fuel costs have risen since the crisis at the Fukushima No. 1 nuclear plant started in March. It has since been unable to restart nuclear reactors suspended for regular checks.
The utility has made up for the loss of electricity from its nuclear plants by raising output at its thermal plants, which run on imported oil and other fuel. It has also been forced to purchase electricity from other utilities, further driving up costs.
Kepco will take out a combined ¥250 billion loan from the DBJ and three banks — Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp. — by the end of December. It hopes to secure the remaining ¥420 billion by March 31, the sources said.
Of the ¥670 billion, the DBJ will likely extend ¥120 billion, Mizuho ¥110 billion, BTMU ¥100 billion and Sumitomo Mitsui ¥100 billion.