Hokkaido Electric Power Company,Incorporated [9509.T]
TOKYO, Jun 29 (Pulse News Wire) – Hokkaido Electric Power Company,incorporated (9509.S) decided to issue hybrid bonds with subordinated provisions to refinance a hybrid loan due on August 31, 2026. The company plans to fully prepay the existing hybrid loan, which was initially issued in 2019, and raise funds through the issuance of new bonds.
The total amount of the hybrid loan to be refinanced is ¥80.00 billion. Key features of the proposed hybrid bond include interest deferral options, long-term repayment schedules, and junior status in liquidation proceedings. The bond's capital-like characteristics are expected to be recognized by credit rating agencies, potentially up to 50% of the issuance amount. The conditions for the bond issuance will be determined based on market demand and interest rate trends, with details to be disclosed promptly once finalized.
SMBC Nikko Securities, Mizuho Securities, Mitsubishi UFJ Morgan Stanley Securities, and Nomura Securities will act as joint lead managers for the bond issuance. The hybrid bonds will carry a total nominal value of ¥80.00 billion and are scheduled for condition determination in late July 2026, with payment due three business days thereafter. The final maturity date remains undetermined but could extend up to 37 years. Additionally, partial redemption may occur seven years post-issue, subject to specific conditions.
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