Execution of Financing Through JBIC Co-financing and Completion of Permanent Financing Arrangement for the Acquisition of U. S. Steel
Nippon Steel Corporation
Nippon Steel Corporation (Nippon Steel) executed financing with a total borrowing amount of approximately 900 billion yen through co-financing by Japan Bank for International Cooperation (JBIC), MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., and Sumitomo Mitsui Trust Bank, Limited (JBIC co-financing).
The funds raised through the JBIC co-financing will be used to repay the bridge loan used as consideration for the acquisition of shares in connection with the transaction of partnership with Nippon Steel's U.S. subsidiary and United States Steel Corporation (U. S. Steel).
The funds to repay the entire bridge loan (approximately 2 trillion yen) were raised by the JBIC co-financing and through a series of financing activities, including the committed subordinated term loan of 500 billion yen (September 18, 2025), the euro-denominated convertible bonds with stock acquisition rights due 2029 of 300 billion yen, and the euro-denominated convertible bonds with stock acquisition rights due 2031 of 300 billion yen (March 12, 2026), thereby completing the permanent financing arrangement.
Through the acquisition of U. S. Steel, Nippon Steel has established an integrated steelmaking structure in the United States, the world's largest market for high-grade steel. Nippon Steel plans to make capital investments of US$11 billion in U. S. Steel by the end of 2028 and, by taking measures such as the transfer of Nippon Steel’s state-of-the-art operational, equipment, and product technologies, to achieve an annual impact of US$3 billion on a structural basis by 2030. Nippon Steel will drastically strengthen the competitiveness of U. S. Steel to meet the growing demand for high-grade steel in the United States.
Nippon Steel is committed to regaining its position as the world’s best steelmaker by further strengthening its foundation in the domestic steelmaking business, and implementing its global growth strategy in overseas businesses.