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Nippon Steel issued JPY 600 billion in convertible bonds to finance its acquisition of U.S. Steel

ByArticle Source LogoSteel RadarFebruary 25, 20261 min read
Steel Radar

The transaction has been recorded as the largest convertible bond offering ever conducted in Japan.

In its filing with Japan’s Ministry of Finance, the company stated that the debt instruments were mainly sold to investors in Europe and Asia, with no issuance carried out in the United States. It was announced that half of the share-convertible bonds will mature in 2029, while the remaining portion will mature in 2031.

Nippon Steel had previously announced that it aimed to raise JPY 550 billion through zero-coupon bonds. However, due to strong investor demand, the issuance size was increased. The bonds carry a conversion premium of 10% above Tuesday’s closing price for the 2029 tranche and 11% above the closing price for the 2031 tranche.

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