Nippon Steel Raises ¥90 Billion in First Bond Offering Since US Steel Acquisition

Nippon Steel completed a ¥90 billion ($560 million) multi-tranche yen-denominated bond sale on June 10, 2026, marking its first straight-bond issuance since finalizing its roughly ¥2 trillion acquisition of U.S. Steel in June 2025. The 10-year tranche carried a 3.202% coupon — the highest in approximately 30 years for the steelmaker — and was priced at a spread of 54 basis points over Japanese government bonds, the widest since 1998. The five-year tenor priced at 47 basis points, notably wider than the 27 basis points paid by Sumitomo Metal Mining in a deal the prior week, despite that company carrying a slightly lower credit rating. Nippon Steel had initially planned to raise around ¥50 billion but expanded the offering to ¥90 billion in response to investor demand, with Daiwa Securities noting the company attracted a broad range of investors despite volatile market conditions tied to geopolitical risks and rising interest rates. A Nippon Steel spokesperson said terms were set at an appropriate yield level given the environment. Credit analysts described the deal as emblematic of a broader dilemma facing Japanese companies that pursue acquisition-led overseas growth, as rising business and financial risks tend to push spreads wider, though such deals can simultaneously offer attractive opportunities for domestic fixed-income investors. Joint lead managers included Mitsubishi UFJ Morgan Stanley Securities, Nomura Securities, SMBC Nikko Securities, Daiwa Securities, and Mizuho Securities.