Nippon Steel to raise $5.6 billion in subordinated loans to fund U.S. Steel deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 03 2025
0mins
Should l Buy ?
Source: Reuters
Funding for Acquisition: Nippon Steel plans to raise 800 billion yen ($5.6 billion) through two subordinated loans to help finance its $14.9 billion acquisition of U.S. Steel and refinance existing loans.
Debt Management Strategy: Following the acquisition, Nippon Steel's debt-to-equity ratio increased significantly, and the company aims to reduce it to around 0.7 by March 2026 through cash flow from earnings and asset sales.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
