Notice Regarding Issuance of Publicly Offered Hybrid Corporate Bonds (Subordinated Corporate Bonds)2022/11/02

JERA Co., Inc. (“JERA”) today announces that it has decided to issue Publicly Offered Hybrid Corporate Bonds (Subordinated Corporate Bonds) (hereinafter, ”the Bonds”) of up to 400 billion yen as below.

Due to factors such as the rapid pace of decarbonization and Russia’s invasion of Ukraine, the environment surrounding the energy business is changing dramatically with sharply rising resource prices and energy security growing in importance.

In this environment, JERA ensures the stable supply of electricity as Japan’s largest power producer, and works to establish a clean energy supply platform that combines renewable energy and low greenhouse gas thermal power to aims to achieve zero CO2 emissions from its business both in Japan and overseas by 2050.

To accelerate the disciplined growth and maximizing corporate value in the future, JERA have decided to issue the Bonds as a means of financing for strengthening our financial base and improving capital efficiency.

The Bonds will be containing the features of both equity and liabilities. The Bonds will have similar characteristics to equity such as an option to defer interest payments, very long-term redemption periods and subordination in liquidation and bankruptcy proceedings, among others. Therefore, JERA expects that Rating and Investment Information, Inc., Japan Credit Rating Agency, Ltd., and S&P Global Ratings Japan, Inc. will deem 50% of the funds under the Bonds as equity for purposes of their ratings.

Depending on the market conditions and demand from investors, JERA plans to determine the terms and conditions of the Bonds, including the date of issuance.