Hokkaido Electric Power Company, Incorporated
Notice Regarding the Issuance of Euro Yen-Denominated Convertible Bonds with Stock Acquisition Rights Due 2031
Hokkaido Electric Power will issue 40 billion yen in euro yen-denominated convertible bonds with stock acquisition rights due 2031, primarily to be allocated to gas business entry and next-generation energy investments.
Key Figures
- Convertible Bonds with Stock Acquisition Rights Issuance Amount: 40 billion yen
- Investment for Full-scale Entry into Gas Business: Approx. 31 billion yen
- Next-Generation Energy Investment Amount: Approx. 9 billion yen
AI要約
Overview of the Issuance of Convertible Bonds with Stock Acquisition Rights
Hokkaido Electric Power Company, Incorporated has resolved to issue euro yen-denominated convertible bonds with stock acquisition rights due 2031 totaling 40 billion yen. The issue price is 102.5% of face value, and no interest will be paid. The offering targets overseas markets in Europe and Asia (excluding the United States) and will be listed on the Singapore Exchange. The conversion price will be determined at issuance, and conversion into shares will increase capital stock and capital surplus.
Use of Proceeds and Business Strategy
The procured funds of approximately 40 billion yen will be allocated mainly to two businesses by March 2028. About 31 billion yen will be invested in the gas manufacturing, sales, and pipeline business in Hokkaido, which is planned to be transferred from Japan Petroleum Exploration Co., Ltd. (JAPEX), aiming for full-scale entry into the gas business. The remaining approximately 9 billion yen will be allocated to investments toward carbon neutrality through next-generation energy such as hydrogen, ammonia, e-methane, and CCUS. These initiatives will contribute to decarbonization and economic development in Hokkaido, strengthening the growth foundation of the Hokuden Group.
