JERA will pay 2.861% a year on a ¥10bn unsecured bond maturing on 24 October 2031, according to a shelf registration supplement filed on 22 October 2026. The 36th issue is labelled a Transition Link Bond. Payment is scheduled for 28 October.
The terms
Interest is paid every 25 April and 25 October, with the first payment on 25 April 2027. The bond carries no collateral or guarantee, and no assets are reserved for it. Daiwa Securities underwrites ¥4.5bn, Mitsubishi UFJ Morgan Stanley Securities ¥3.0bn, SMBC Nikko Securities ¥1.5bn and Tokai Tokyo Securities ¥1.0bn. R&I rated the bond AA-, and JCR rated it AA, both on 22 October.
What the sustainability link commits JERA to
The measure is Scope 1 CO2 emissions intensity of the group's domestic power generation. The target is 0.477kg of CO2 per kilowatt-hour or less in fiscal 2030, tested on any day up to 24 October 2031. If the target is missed, JERA will donate 0.10% of the issue amount to bodies such as public-interest foundations, international organisations or local governments pursuing environmental conservation. The filing names no other consequence of a miss.
JERA's framework says it does not set annual targets, because its emissions-cutting measures run over the medium to long term and progress is uneven. It also allows for a temporary miss to be excused where domestic power supply shifts for reasons it deems reasonable. That provision is written into the framework, not into this bond's terms.
Where the money goes
Net proceeds are about ¥9.97bn after ¥28mn of issuance costs. JERA plans to spend them by the end of March 2027 on capital expenditure, investments and loans, loan repayment and bond redemption. The filing says no specific investment has been decided, and notes ¥173.5bn of long-term borrowings due within a year at the end of March 2026. Until spent, the cash will sit in safe financial instruments. The bond is therefore not earmarked for new low-carbon projects.
The issue is drawn from a ¥500bn shelf registration that expires on 9 November 2026. Earlier Tokyo Brief coverage