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Tepco sets indicative interest rates for $620 mln bond sale
February 20, 2017 / 12:35 AM / 9 months ago

Tepco sets indicative interest rates for $620 mln bond sale

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TOKYO, Feb 20 (Reuters) - Tokyo Electric Power Co (Tepco) set out indicative terms for the interest rates on 70 billion yen ($620 million) of three and five-year bonds the company is planning to sell, its first sale since the 2011 Fukushima nuclear disaster.

Tepco Power Grid Inc, a Tepco unit in charge of power transmission and distribution, said in a filing on Monday it will pay 0.32 percent to 0.47 percent on the three year bonds and 0.48 percent to 0.68 percent on the five-year debt.

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 coupon will be set between March 3 and 17.

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 Tepco to its knees.

The utility, once Asia’s largest, 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.

Tepco, 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 = 112.8700 yen) (Reporting by Aaron Sheldrick; Editing by Richard Pullin)

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