Bloomberg News

Tepco Bailout Fund Starts Steps to Raise Up to 2 Trillion Yen

February 15, 2012

Feb. 14 (Bloomberg) -- Japan’s government, seeking to bailout Tokyo Electric Power Co. after the Fukushima nuclear disaster, met representatives from about 100 financial companies as it prepares to raise as much as 2 trillion yen ($26 billion) of loans, five people involved in the meeting said.

The government-run Nuclear Damage Liability Facilitation Fund hosted its biggest meeting yet with banks on obtaining a syndicated loan, which will be guaranteed by the government, with a borrowing period of less than one year, according to presentation materials obtained by Bloomberg News.

The loan size and timing of bids weren’t announced at the meeting, the people said, declining to be identified because the information isn’t public. Banks wishing to bid will need to register with the fund by around March 14, the presentation material says.

The fund can use as much as 5 trillion yen of special bonds, some of which have been already issued by the government, to help the utility known as Tepco pay compensation to those affected by the Fukushima nuclear disaster that forced about 160,000 people to be evacuated almost 1 year ago.

The fund has a loan guarantee line of as much as 2 trillion yen to obtain shares in Tepco or lend to the operator of the crippled Fukushima Dai-Ichi station. The special bonds, which can be immediately redeemed, may be only used for compensation payments.

Mizuho Corporate Bank Ltd. is the arranger for the syndicated loan, according to the material.

Tepco yesterday received extra aid of 689.4 billion yen from the government and is seeking a larger bailout as it sits on the edge of bankruptcy. Japan’s trade and industry minister, Yukio Edano, told Tepco President Toshio Nishizawa the government won’t approve the broader package unless it gets “sufficient” voting rights.

--Editors: Peter Langan, Aaron Sheldrick

To contact the reporters on this story: Tsuyoshi Inajima in Tokyo at tinajima@bloomberg.net; Yuji Okada in Tokyo at yokada6@bloomberg.net; Emi Urabe ???? in Tokyo at eurabe@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus