Japan’s Nippon Steel to raise 550 billion yen in convertible bonds

TOKYO, Feb 24 : Japan’s Nippon Steel said on Tuesday it planned to raise 550 billion yen ($3.55 billion) via a euro-yen convertible bond sale, as the company is looking for funding to finance its business operations.

The bond issue is planned in two equal tranches of 275 billion yen each maturing in 2029 and 2031, bearing stock acquisition rights and zero interest, the company said in regulatory documents.

Reuters reported this month on Nippon Steel’s plans for a convertible bond sale, citing sources, as the company seeks funding to replace a bridge loan it took out to buy U.S. Steel last year for $15 billion. It also pledged additional investments into the U.S. asset to win approval for the merger.

This month, Nippon Steel widened its net loss forecast for the financial year to end-March to 70 billion yen due in part to a fire at a blast furnace and because of charges related to its acquisition of U.S. Steel.

($1 = 155.0400 yen)