Posted on 25 Feb 2026
Nippon Steel has decided to increase its convertible bond offering to 600 billion yen ($3.85 billion), the biggest in Japan's corporate history, as it seeks to refinance its $15 billion takeover of U.S. Steel and fund business expansion.
The company said on Tuesday that it was raising the offering, planned in two equal tranches, by a total of 50 billion yen, based on investor demand and market conditions, as it seeks to invest 6 trillion yen over the next five years, including $11 billion in U.S. Steel, to fund growth.
The increase in the offer size came shortly after Nippon Steel announced plans in regulatory documents to raise 275 billion yen each through the offering, maturing in 2029 and 2031, respectively, and bearing stock acquisition rights and zero coupon.
Reuters reported earlier this month on Nippon Steel's plans for a convertible bond sale, citing sources, as the company seeks funding to replace a bridge loan it took out to buy U.S. Steel.
"By choosing convertible bonds over an equity offering, the company aims to limit immediate shareholder dilution," Jefferies analysts said in a note, describing the planned bond operation as the largest ever by any Japanese company.
"The funding plan marks a turning point that enables Nippon Steel to focus on overseas-led growth while balancing financial discipline," they added.
This month, Nippon Steel widened its net loss forecast for the financial year to end-March to 70 billion yen due in part to a fire at a blast furnace and because of charges related to its acquisition of U.S. Steel.
Aside from the United States, Nippon Steel targets India and Thailand among its growth markets, and plans annual global crude steel production capacity to rise to at least 100 million metric tons by mid-2030s from 82 million now.
Source:CNA
