According to The Japan Times, the coupon rate on the 10-year bonds was set at 3.202% annually, marking the highest level for a Nippon Steel bond issuance in the past 30 years.
The 10-year tranche was priced at a spread of 54 basis points over Japanese government bonds, the widest level recorded by the company since 1998. Meanwhile, the five-year bonds were issued at a spread of 47 basis points.
Nippon Steel completed its acquisition of U.S. Steel in June 2025 for approximately ¥2 trillion. The bond issuance is being viewed as an important test of investor appetite for Japanese companies pursuing growth through overseas acquisitions.
Company officials stated that the bond sale was completed under satisfactory financing conditions despite ongoing geopolitical uncertainties and volatility in global financial markets. Market participants also noted that some investors remained cautious due to developments in the Middle East and rising interest rates.
Nippon Steel had initially planned to raise around ¥50 billion through the offering. However, strong investor demand enabled the company to increase the issuance size to ¥90 billion.
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