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Nippon Steel to Raise ¥550 Billion via Zero Coupon Convertible Bonds for U.S. Steel Deal and Growth Drive

Tipranks - Wed Feb 25, 2:28AM CST

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An update from NIPPON STEEL ( (JP:5401) ) is now available.

Nippon Steel plans to issue zero coupon convertible bonds due 2029 and 2031 with a combined principal of ¥550 billion, potentially increasing the size depending on investor demand and market conditions. The proceeds are earmarked to refinance part of the roughly ¥2 trillion bridge loan used to acquire U.S. Steel and to support about ¥6 trillion in planned capital and business investments over the next five years.

By diversifying its funding mix through equity-linked debt alongside subordinated bonds, loans, and asset sales, the company aims to secure early, flexible financing while maintaining capital efficiency. The move underpins its strategy to achieve annual underlying consolidated business profits of at least ¥1 trillion and global crude steel capacity of 100 million tons, reinforcing its financial base for the next phase of global growth.

The most recent analyst rating on (JP:5401) stock is a Hold with a Yen703.00 price target. To see the full list of analyst forecasts on NIPPON STEEL stock, see the JP:5401 Stock Forecast page.

More about NIPPON STEEL

Nippon Steel Corporation is a leading global steelmaker, producing crude steel and related steel products for automotive, construction, energy, and industrial customers worldwide. The company has been expanding its international footprint, including the acquisition of U.S. Steel, to build a larger, globally integrated production network and strengthen its earnings base.

Average Trading Volume: 25,126,818

Technical Sentiment Signal: Buy

Current Market Cap: Yen3677.8B

See more data about 5401 stock on TipRanks’ Stock Analysis page.

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