TEPCO to Receive 400-B.-Yen Bank Loans

Tokyo, Feb. 14 (Jiji Press)--Major Japanese banks plan to lend 400 billion yen in total to Tokyo Electric Power Company Holdings Inc. <9501> as early as April, it was learned Tuesday.

The Development Bank of Japan, Sumitomo Mitsui Banking Corp., Mizuho Bank and seven other banks will support the power supplier's efforts to raise funds and improve its financial base at a time when its earnings are pressured by higher prices of liquefied natural gas and other energy sources due chiefly to Russia's invasion of Ukraine.

The DBJ will lend nearly 90 billion yen, Sumitomo Mitsui 83 billion yen and Mizuho 62 billion yen, informed sources said.

TEPCO has applied with the industry ministry for regulated rate hikes for households in June. The company hopes to strengthen its financial base through the envisaged rate increase and the planned bank lending.

The company logged a record consolidated net loss of 650.9 billion yen for April-December last year, citing soaring fuel prices and a falling yen.

[Copyright The Jiji Press, Ltd.]