Source disclosure: February 12, 2026
Hokkaido Electric Power Company,Incorporated [9509.T]
TOKYO — Hokkaido Electric Power Co., Inc. announced on February 12, 2026, that its board of directors had approved the issuance of Euro-yen convertible bonds due in 2031. The company stated it would issue these bonds to bolster its financial position and diversify funding sources.
The decision to issue the bonds was driven by the need to support Hokkaido's economic growth and the group’s strategic vision outlined in "Hokuden Group Business Vision 2035," which aims to contribute to Japan's energy decarbonization from Hokkaido. This includes ensuring stable power supply through the restart of the Tomari Nuclear Power Plant units and expanding liquefied natural gas (LNG) facilities like the Ishikari Wan New Port Power Station Unit 2 and Unit 3, scheduled to start operations in fiscal years 2030 and 2033 respectively.
Moreover, Hokkaido faces significant challenges related to high dependency on oil and coal, accounting for approximately 62% of final energy consumption in 2023. Recognizing this, the company plans to enter the gas business more comprehensively, aiming to increase gas demand across Hokkaido by leveraging LNG infrastructure such as the Muroran LNG terminal. The funds raised will be used to invest in projects aimed at reducing costs and enhancing competitiveness in the gas sector.
Regarding the specifics of the bond issuance, the company intends to raise about ¥400 billion through the issuance of zero-coupon convertible bonds. These funds will be allocated towards two primary initiatives: the comprehensive entry into the gas business and investments in next-generation energy technologies for carbon neutrality. Specifically, ¥310 billion is earmarked for acquiring JAPEX's gas manufacturing, sales, and pipeline businesses in Hokkaido, while another ¥90 billion will go toward developing hydrogen, ammonia, e-methane, and CCUS projects.
The bonds will be issued via an underwriting arrangement led by Mizuho International plc, targeting overseas markets excluding the United States. The total amount offered will be subscribed individually by the underwriters based on market conditions, with subscription bids accepted until 8 AM JST on the day following the pricing announcement. Each bond will have a face value of ¥1,000 million, sold at 102.5% of par value, and will come attached with conversion rights exercisable into ordinary shares of Hokkaido Electric Power Co., Inc.
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