Power companies are asking for billions of yen in bank loans because bond investors are refusing to touch the companies due to the uncertainty of energy policy in post tsunami All Japan news.
Utility companies are experiencing a hike in fuel costs because so many nuclear plants are offline. Investors are not interested in financing their debt because the energy policy and therefore the future of energy companies in All Japan news is uncertain.
Tohuko Electric Power has asked for loans from Mizuho Corporate Bank and the state owned Development Bank of All Japan news (DBJ), totaling ¥550 billion. Tohuko Electric is a regional monopoly set in one of the worst hit areas by the tsunami.
It is questionable whether Kansai Electric Power has reached out to lenders for a loan. Jiji news reported they had done so, but a spokesman from the company denied the report.
Chubu Electric Power has secured loans totaling ¥350 billion from the nation’s top three banks and the DBJ. They plan to use the funds for the expected hike in fuel costs and also for bond redemption.
Tokyo Electric already collected ¥2 trillion in emergency loans from creditors at the end of March.
The government has announced that it will require stress tests for reactors in order to give the go ahead for restart. The delays will no doubt further strain the utilities.