Tokyo Electric set to receive $5.9bn financing in October and December

September 30, 2013 - 8:23:37 am
TOKYO: Creditors of Tokyo Electric Power Co are set to provide some $5.9 billion in financing to the embattled utility by the end of the year, offering a lifeline to the company struggling to contain the disaster at its crippled Fukushima facility, a person involved in the talks told Reuters on Monday.

Tepco's application on Friday to restart an undamaged nuclear plant helped to convince some wavering smaller banks to join a group of 28 financial institutions in rolling over 77 billion yen or $784 million in loans coming due at the end of October, said the source at one of the creditor institutions.

The company's major banks are also prepared to provide 500 billion yen or $5.09 billion in financing in December, 200 billion in loan rollovers and 300 billion yen in new financing, the source said.

Tepco on Friday applied to restart its Kashiwazaki Kariwa facility, the world's largest nuclear plant, an initial step on its planned recovery from the Fukushima disaster, although approval is uncertain and any restart is many months away.

The company's president, Naomi Hirose, said in an interview published on Sunday that Tepco will likely turn a profit for the first time in three years this business year, without raising electricity rates or restarting reactors. (Reuters)