(Adds indicative coupon, details)
By Issei Hazama
TOKYO Feb 27 Tokyo Electric Power Co
(Tepco) said on Monday it has increased the size of its first
bond offer since the 2011 Fukushima nuclear disaster by nearly
30 percent, after investors showed strong interest.
The company raised the sale to 90 billion yen ($803 million)
from 70 billion yen, Tepco said in a filing on Monday. The
company is now selling 40 billion yen of three-year debt and 50
billion yen of five-year bonds.
Tepco Power Grid Inc, a Tepco unit in charge of power
transmission and distribution, will pay 0.37 percent to 0.39
percent on the three-year bonds and 0.57 percent to 0.59 percent
on the five-year debt, sources told Thomson Reuters DealWatch.
The coupon will be set on Friday, they said.
The company submitted plans earlier this month to sell 30
billion yen of three-year bonds and 40 billion yen of five-year
bonds, using the proceeds to pay for equipment, pay back debt
and bond payments.
The sale will mark Tepco's return to Japan's corporate bond
market, which it dominated before the 2011 earthquake and
tsunami triggered the world's worst nuclear crisis since
Chernobyl in 1986, bringing the utility to its knees.
Tepco, once Asia's largest utility, was essentially
nationalised after Fukushima. It faces billions of dollars in
costs to dismantle the crippled Fukushima Daiichi nuclear power
plant, decontaminate the area and compensate victims after the
meltdown of three reactors.
The company, which has 650 billion yen worth of bonds
maturing in the year ending March 2018, wants to restart regular
bond issuance to ensure stable refinancing.
($1 = 112.0500 yen)
(Reporting by Issei Hazama; Writing by Aaron Sheldrick; Editing
by Paul Tait and Stephen Coates)