off-the-wire

Japan's Kyushu Electric to raise $1.5 billion to fund green transition

Kitco Media
By Reuters
Published:
Updated:
Reuters

TOKYO, April 28 (Reuters) - Japan's Kyushu Electric Power Co (9508.T) will issue 200 billion yen ($1.5 billion) in preferred shares to help fund its green transition at a time when high fuel prices are weighing on its profitability, the company said on Friday.

Japanese utilities were hit by high fuel costs last year as a post-pandemic energy crisis was exacerbated by Russia's invasion of Ukraine. The government delayed a request from a number of companies to raise energy prices as it tries to rein in inflation.

Kyushu Electric said the Class B preferred shares are to be bought by Mizuho bank, Development Bank of Japan and MUFG bank. The power firm will meanwhile acquire and cancel existing Class A preferred shares worth 100 billion yen held by the same group of investors.

On Friday, the company forecast a net profit of 90 billion yen in the fiscal year ending March 31, 2024, after posting a 56.4 billion loss in 2022/23.

($1 = 135.6300 yen)

Reporting by Katya Golubkova
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