By Takahiko Hyuga | Updated on Jun 10, 2026 at 08:30 AM
Nippon Steel Corp. raised ¥90 billion ($560 million) via its first straight-bond offering since completing the acquisition of United States Steel Corp.
The 10-year tranche of the multi-part sale carried a 3.202% coupon, the highest for the company in about 30 years, according to data compiled by Bloomberg.
Those notes were priced at a spread of 54 basis points over Japanese government bonds, the widest since 1998, data compiled by Bloomberg showed. The five-year tenor was sold at 47 basis points, versus 27 basis points for a Sumitomo Metal Mining Co. deal last week, which had a slightly lower credit rating.
Nippon Steel completed its roughly ¥2 trillion purchase of US Steel in June 2025. The yen-denominated bond sale is an early test of investor appetite for Japanese companies pursuing growth through large overseas acquisitions.
Japanese companies often face a “dilemma” of having to pay wider spreads when pursuing acquisition-led overseas growth as business and financial risks rise, said Shunsuke Oshida, head of credit research at Manulife Investment Management (Japan) Ltd. For domestic investors, such deals can offer attractive opportunities, he said.
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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.
While some investors remained cautious amid concerns over the Middle East and rising interest rates, Nippon Steel was able to “attract a broad range of investors” and increase the deal size, said Dai Otsu, head of debt syndication at Daiwa Securities Co.
The issuer had initially planned to raise around ¥50 billion and ultimately boosted the size to ¥90 billion in response to investor demand.
Joint lead managers were Mitsubishi UFJ Morgan Stanley Securities Co., Nomura Securities Co., SMBC Nikko Securities Inc., Daiwa Securities and Mizuho Securities Co.