Hokkaido Electric Power to Issue ¥40 Billion Zero-Coupon Convertible Bonds for Gas and Clean Energy Push

Hokkaido Electric Power Company,Incorporated ( (JP:9509) ) has issued an announcement.

Hokkaido Electric Power Company has approved the issuance of ¥40 billion in zero-coupon convertible bonds due 2031, aiming to strengthen its financial base, diversify funding sources and reduce capital costs as it pushes forward with decarbonization and supply stability initiatives. The structure is expected to lower funding expenses while providing an equity-linked financing tool that supports the group’s long-term strategic priorities.

The company plans to allocate about ¥31 billion of the proceeds to finance the acquisition of gas production, gas sales and pipeline businesses in Hokkaido from Japan Petroleum Exploration, deepening its presence in the regional gas market. The remaining roughly ¥9 billion will fund investment in next-generation energy solutions such as hydrogen, ammonia, e-methane and CCUS, in line with its HEPCO Group Management Vision 2035, underscoring a strategic pivot toward cleaner energy and diversified revenue streams.

The most recent analyst rating on (JP:9509) stock is a Buy with a Yen1186.00 price target. To see the full list of analyst forecasts on Hokkaido Electric Power Company,Incorporated stock, see the JP:9509 Stock Forecast page.

More about Hokkaido Electric Power Company,Incorporated

Hokkaido Electric Power Company, Incorporated is a regional utility focused on electricity generation and supply in Japan’s northernmost prefecture. Through the HEPCO Group, it is expanding into integrated energy services, including gas production, gas sales, pipeline operations, and next-generation energy solutions aligned with decarbonization trends.

Average Trading Volume: 4,843,355

Technical Sentiment Signal: Strong Buy

Current Market Cap: Yen222.2B

For an in-depth examination of 9509 stock, go to TipRanks’ Overview page.