• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 2 hours Could oil demand collapse rapidly? Yup, sure could.
  • 19 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 2 hours U.S. Withdraws From U.N. Human Rights Council
  • 2 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 15 hours What If Canada Had Wind and Not Oilsands?
  • 2 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 3 hours Gazprom Exports to EU Hit Record
  • 21 hours Sell out now or hold on?
  • 8 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 hours EVs Could Help Coal Demand
  • 5 hours WE Solutions plans to print cars
  • 22 hours Nopec Sherman act legislation
  • 21 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 10 hours Lloyd's of London excludes coal
  • 16 hours Oil and Trade War
  • 17 hours Australia mulls LNG import

Japan’s Tepco To Issue First Bond Since Fukushima Disaster

Nuclear Japan

In its first bond sale since the Fukushima nuclear tragedy in 2011, Tokyo Electric Power Co (Tepco) has filed plans to issue US$612 million (70 billion yen) worth of bonds, and investors who view this as guaranteed by the state may take interest.

According to Reuters, Tepco’s power transmission and distribution unit Tepco Power Grid Inc has filed with the Kanto Local Finance Bureau plans to issue a three-year bond worth US$262 million (30 billion yen) and a five-year bond worth US$349.6 million (40 billion yen). The coupons are expected to be set by 17 March 2017.

Tepco – which has US$5.681 billion (650 billion yen) in bonds due by March 2018 – wants to secure regular financing by regular bond issues, the company said.

Tepco has hired six companies to manage the bonds issue: SMBC Nikko Securities, Nomura Securities, Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities, Daiwa Securities, and Shinkin Securities.

After the Fukushima disaster, the world’s worst nuclear meltdown since Chernobyl in 1986, Tepco was basically nationalized by the government, which now owns 50.1 percent of the company.

Some investors see the government participation in Tepco as an implicit guarantee by the state for the utility.

Tepco is facing multi-billion costs related to decommissioning the Fukushima plant Late last year, the Japanese government almost doubled its forecast for costs to US$188 billion (21.5 trillion yen).

More recently, Tepco has had to cope with poor communications surrounding reported radiation levels inside a Fukushima reactor. While the radiation levels reported are higher than any reported since the 2011 disaster—prompting a global media scare—this is more of a Tepco PR failure than real news. Tepco is sending in robots closer to spent fuel as part of the recovery process, so radiation readings will necessarily be higher. The problem is largely Tepco’s inability to express itself to the public.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment
  • j lien on February 15 2017 said:
    They can use the money to pay for the uranium that they are contracted to buy from Cameco.
    Currently they are in default of payment.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News