TEPCO eyes $24.7B in loans

Major Japanese banks are considering to extend loans to TEPCO of up to US$24.7 billion.

Among banks, Sumitomo Mitsui Banking Corp. is expected to provide loans of about US$7.4 billion, Mizuho Corporate Bank some US$6.1 billion and the Bank of Tokyo-Mitsubishi UFJ about US$3.7 billion.

In addition, Mitsubishi UFJ Trust and Banking Corp., Sumitomo Trust & Banking Co., Chuo Mitsui Trust and Banking Co. and Shinkin Central Bank are also considering extending loans as Tokyo Electric is likely to have requested loans from each of them last week, the sources said.

The move is aimed at helping Tokyo Electric Power Co.  secure funds for measures to boost electricity supply following a quake-triggered accident at its Fukushima Dai-ichi nucelar power plant.

TEPCO Executive Vice President Takashi Fujimoto confirmed that his company is indeed securing loans.He explained that TEPCO needs to set up facilities and that the loans are ''necessary to take several steps to bring the current electricity supply to a normal condition.''

The utility firm had procured funds mostly through debt issues, but it has apparently decided to ask banks for loans as conditions to issue corporate bonds have become severe following the nuclear power plant accident.