Monthly Report

Digital Grid secures 10.6B yen through credit facilities ahead of expected increase in trading volume

August 29, 2024
Digital Grid
Digital Grid secured credit facilities from multiple banks. (Image: Digital Grid)

Power trading platform operator Digital Grid secured commitment lines and an overdraft facilities totaling 10.6 billion yen in expectation of an increase in required working capital, the company announced on August 27, 2024.

“We raised funds to respond to the expected increase in trading volume [on our platform] and the related increase in required advance payments, as well as due to the expected increase in wholesale power prices,” the company said in its statement. Digital Grid’s business model creates a lag between the time the company is required to pay power suppliers and the time it is paid by its customers.

Digital Grid secured over half of the amount through a 5.6 billion yen syndicated commitment line contract agreed to in July 2024 with a Mizuho Bank-arranged syndicate joined by Resona Bank and Taiko Bank.

The remaining 5 billion was secured through bilateral commitment lines and overdraft facilities with Sumitomo Mitsui Banking Corporation, Shoko Chukin Bank, and The Bank of Fukuoka concluded between July and August 2024.

Among other things, Digital Grid has been active in serving as a balancing service provider for self-wheeling arrangements (e.g., for Daihatsu Diesel Manufacturing and Prologis) and corporate PPAs.

If you found the above helpful, join our free weekly newsletter to get a summary of the latest news from the Japanese power market straight in your inbox.

…or create a FREE Japan Energy Hub account to not only receive the newsletter but also access to selected parts of our data modules.

In other news...

Monthly Report - The Japanese Power Industry Executive

Submit the form below to receive a sample issue of The Japan Power Industry Executive.