Nippon Steel, Japan's largest steel company, has decided to increase the issue of convertible bonds to 600 billion yen ($3.85 billion) from the previously announced 550 billion yen, based on investor demand and market conditions.
This is a record amount both for the company itself and in Japan's corporate history, according to the Reuters news agency.
The bonds will be placed in two equal tranches maturing in 2029 and 2031, Nippon Steel said in a statement. The bonds are issued with a zero coupon, but they give the right to purchase shares of the company.
Nippon Steel plans to sell the securities abroad, most of them in Europe and Asia. There will be no placement in the USA.
The release is organized by Nomura, Goldman Sachs and Bank of America.
According to Nikkei, Nippon Steel wants to raise about 1.3 trillion yen in total. Last week, the newspaper reported that she may sell shares of other companies for 300 billion yen. The steel giant has already come out with more than 80% of its strategic investments.
Last year, Nippon Steel bought American US Steel for about 2 trillion yen, financing the deal through a credit facility that matures in June.
Takahiko Iwai, the chief financial officer of the Japanese company, said last week that it had about 1.3 trillion yen left to repay the debt under this line. The initial part was repaid through hybrid loans in yen and other instruments.
Over the next five years, the company expects to spend about 6 trillion yen on capital and business investments, including capital investments in US Steel at the level of $11 billion.
From March to December 2025, the total amount of interest-bearing debt of Nippon Steel doubled to 5.3 trillion yen.
The company's shares fell by 1.5% following the results of trading on Tuesday.
