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erex prices ¥8.4bn in bonds across three maturities, its first draw on a ¥50bn shelf

erex has sold ¥8.4bn of unsecured bonds in 1.5-, 3- and 5-year tranches priced at 2.740%, 3.506% and 4.516%, the first drawdown under a ¥50bn shelf registration filed in July, with most of the proceeds set to repay bonds maturing next spring and fund growth spending that includes renewable energy.

Sep 15, 20262 min readeREX Co.,Ltd.9517
Editorial illustration of an ascending bar chart representing three bond maturities beside a simplified power transmission line, symbolizing a Japanese power company's staggered bond issuance.

erex Co., the Tokyo-based independent power producer, has sold ¥8.4bn of unsecured straight bonds split across three maturities, the first money drawn from a ¥50bn shelf registration it filed with the Kanto Local Finance Bureau in July. Before this offering, none of that shelf capacity had been used.

The three tranches price erex's credit across a curve rather than at a single point. The shortest note pays 2.740% and matures in March 2028; the middle tranche pays 3.506% and runs to September 2029; the longest pays 4.516% and matures in September 2031.

erex's three new bond tranches
All three tranches are unsecured, rated A- by Japan Credit Rating Agency, and settled on September 25, 2026.
TrancheAmountCouponMaturity
3rd unsecured bonds (1.5-year)¥2.0bn2.740%March 24, 2028
4th unsecured bonds (3-year)¥2.7bn3.506%September 25, 2029
5th unsecured bonds (5-year)¥3.7bn4.516%September 25, 2031

Japan Credit Rating Agency assigned an A- rating to the bonds on the filing date. All three carry an inter-bond pari passu clause: if erex pledges collateral against other unsecured bonds it has issued or may issue domestically, these three tranches get an equal claim on it. No bond administrator is appointed, meaning holders must monitor and enforce their own claims. Sumitomo Mitsui Banking Corporation acts as fiscal agent.

The subscription period ran September 15, 2026, with settlement on September 25. A five-firm underwriting syndicate placed the deal, led by Daiwa Securities, alongside SMBC Nikko, Mizuho, Mitsubishi UFJ Morgan Stanley, and SBI Securities.

On use of proceeds, erex said ¥5bn of the roughly ¥8.35bn net take will redeem its first unsecured bond series, which matures in April next year. Another ¥2.5bn is earmarked for working capital tied to fuel resale trading and growth in low-voltage electricity demand, to be spent by the end of March 2027. The remainder is earmarked for growth investment, including renewable-energy-related spending, through the end of March 2028.

The filing also flags an event-of-default trigger tied to erex's other obligations: acceleration kicks in if the company fails to meet guaranteed debt exceeding ¥500mn in aggregate, a threshold worth noting given the group's separate exposure to financial covenants on its syndicated loan facilities.