TEPCO Power Grid, the transmission and distribution arm of the TEPCO group, signed five separate loan agreements on September 11 and September 15, disclosed in an extraordinary report filed with the Kanto Local Finance Bureau on September 17. The loans range from ¥139.5bn to ¥279.0bn and come from a syndicate of city banks, trust banks and life insurers, plus a fifth loan of ¥218.7bn from a government-affiliated financial institution. All five mature on the same day, March 30, 2027, and none carry collateral.
| Agreement | Lender type | Principal | Covenant scope |
|---|---|---|---|
| Loan 1 (Sept 15) | City banks, trust banks, life insurers | ¥139.5bn | Standalone only |
| Loan 2 (Sept 15) | City banks, trust banks, life insurers | ¥158.9bn | Standalone only |
| Loan 3 (Sept 15) | City banks, trust banks, life insurers | ¥139.5bn | Standalone only |
| Loan 4 (Sept 15) | City banks, trust banks, life insurers | ¥279.0bn | Standalone + group-wide |
| Loan 5 (Sept 11) | Government-affiliated institution | ¥218.7bn (¥137.8bn + ¥80.9bn tranches) | Standalone (¥137.8bn) + group-wide (¥80.9bn) |
Every agreement carries the same baseline protection for lenders: TEPCO Power Grid's standalone ordinary profit and net profit, after adjustment, must not turn into a loss in any fiscal year, and its standalone net assets cannot fall below 75% of the prior year-end level. Miss either test, and lenders can call in the loan early by declaring the company has lost its benefit of term.
Two of the facilities, the ¥279.0bn loan and an ¥80.9bn slice of the ¥218.7bn loan from the government-affiliated lender, go further. They tie repayment rights to results at the wider TEPCO group: the five-company consolidation of TEPCO Holdings, TEPCO Fuel & Power, TEPCO Power Grid, TEPCO Energy Partner and TEPCO Renewable Power, and separately to TEPCO Holdings' own consolidated accounts. Those two loans prohibit an ordinary-profit loss at both consolidation levels, and add a rolling two-quarter test: quarterly profit must sit at least 75% of a lender-agreed figure when that figure is positive, or no worse than 125% of it when negative, alongside similar 75% floors on net assets and cash balances. Fail the test for two consecutive quarters, and the acceleration clause applies.
None of this points to a covenant breach. The filing discloses no violation, only the terms attached to the loan agreements TEPCO Power Grid signed on September 11 and September 15.
The same day, TEPCO Power Grid also filed an amendment to its bond shelf registration, which was declared effective in April 2026 and covers a planned issuance of ¥1tn against a remaining issuable capacity of ¥790.0bn. The amendment folds the new extraordinary report in as a reference document for future bond sales. It changes none of the shelf's terms or capacity; it simply means investors evaluating future TEPCO Power Grid bonds under that shelf will now see the covenant language attached to these five loans. The company has just over six months before all of them, and whatever conditions attach to them, come due together on March 30, 2027.