Tokyo Electric Power Co. is in talks with banks for ¥280 billion in new loans next June, two sources with knowledge of the matter said.
Tepco is also scheduled next month to repay ¥150 billion in emergency borrowings related to the disaster at the Fukushima No. 1 nuclear plant from Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd. and Bank of Tokyo-Mitsubishi UFJ Ltd., according to the sources, who asked not to be identified because the information is private.
The utility plans to raise about ¥300 billion in loans in fiscal 2015 and about ¥1 trillion in bonds and loans in fiscal 2016, Hiroshi Itagaki, a Tokyo-based Tepco spokesman, said. He declined to comment on the timing of borrowings and details of repayment plans.
Tepco, the nation’s biggest power company, received about ¥2 trillion in emergency loans after the March 2011 earthquake and tsunami led to the meltdown of three reactors at the Fukushima plant. The utility must refinance for the repayment of trillions of yen of debt in coming years and is also seeking new loans for its growth strategy in its turnaround plan released in January.
Tepco repaid ¥4 billion of the emergency loans in April to the Development Bank of Japan, according to an official with the bank.
The government-backed DBJ was the utility’s biggest lender with ¥768.1 billion in outstanding loans as of March 31, according to Tepco’s annual report released in June.
SMBC’s lending stood at ¥711.8 billion, Mizuho at ¥534.2 billion and Bank of Tokyo-Mitsubishi UFJ at ¥334.6 billion, according to the report.
In addition to bank loans, Tepco has ¥4.2 trillion of outstanding bonds as of March 31, according to company data. Tepco has to redeem ¥438.1 billion of bonds in fiscal 2015, ¥566.8 billion in fiscal 2016 and about ¥1.3 trillion in fiscal 2017, according to the company’s redemption schedule in an Oct. 31 report.
Tepco repaid ¥635.5 billion of bonds in the year ended March 31, the company has said.