More money from 3 megabanks for TEPCO

November 19, 2013

TEPCO to seek additional loans from megabanks

http://ajw.asahi.com/article/0311disaster/fukushima/AJ201311190045

THE ASAHI SHIMBUN

Tokyo Electric Power Co. is asking three megabanks to extend it additional loans above and beyond the 500 billion yen ($5 billion) already scheduled in late December.

TEPCO and the government's Nuclear Damage Liability Facilitation Fund put in the request at some time up to Nov. 18, sources said.

The size of the loan will be finalized following further discussions. The additional funds are set to be included into the utility's rehabilitation program that will be reviewed in December.

The rehabilitation program already incorporates 1 trillion yen in loans.

The three megabanks--Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group, along with the Development Bank of Japan--extended a total of 700 billion yen in loans in summer 2012.

The remaining 300 billion yen in new loans is scheduled to be dispersed next month along with 200 billion yen in refinancing.

The new request for loans from TEPCO is expected to be used to cover costs for increased thermal power production following the 2011 nuclear disaster, and for making investments in overseas projects.

However, because the megabanks already have a huge amount of outstanding loans to TEPCO, bank officials are expected to move cautiously in meeting the latest request to raise the loan figure.