Nippon Steel Raises ¥90 Billion in First Bond Sale Since U.S. Steel Acquisition, Boosted by Strong Demand

Nippon Steel raised ¥90 billion ($560 million) through its first straight-bond offering since completing the acquisition of United States Steel. 202% coupon and a spread of 54 basis points over Japanese government bonds. 202% coupon marked the company's highest level in about 30 years, according to Bloomberg data.

The 54 basis point spread was the widest since 1998, also per Bloomberg figures. The five-year portion sold at 47 basis points, compared with 27 basis points on a Sumitomo Metal Mining deal completed the prior week that carried a slightly lower credit rating.

U.S. Steel in June 2025. The company had initially planned to raise around ¥50 billion but increased the size to ¥90 billion after strong investor demand. A Nippon Steel spokesperson said the company was able to set terms at an appropriate yield level despite volatile market conditions driven by geopolitical risks.

Dai Otsu, head of debt syndication at Daiwa Securities, said Nippon Steel attracted a broad range of investors and increased the deal size while some investors remained cautious amid concerns over the Middle East and rising interest rates. Shunsuke Oshida, head of credit research at Manulife Investment Management (Japan), said Japanese companies often face a dilemma of having to pay wider spreads when pursuing acquisition-led overseas growth as business and financial risks rise.

The yen-denominated bond sale serves as an early test of investor appetite for Japanese companies pursuing growth through large overseas acquisitions.

Joint lead managers for the transaction were Mitsubishi UFJ Morgan Stanley Securities, Nomura Securities, SMBC Nikko Securities, Daiwa Securities and Mizuho Securities. The article was published on June 10, 2026.