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JBIC, Megabanks Poised to Lend ¥900 Billion to Nippon Steel, Reports Say

The financing would refinance short-term bridge debt from the $14.1 billion U.S. Steel takeover to cut interest costs.

Overview

  • Japanese media reports on March 17 say JBIC and major banks are arranging roughly ¥900 billion in loans for Nippon Steel, with no formal confirmations from the parties.
  • Participants reported include MUFG Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and Sumitomo Mitsui Trust Bank.
  • JBIC would provide about ¥550 billion while the four banks would supply around ¥350 billion, according to the Mainichi.
  • Nippon Steel used a one-year bridge loan to fund the June 2025 U.S. Steel purchase for $14.1 billion and is expected to swap into longer-term financing.
  • The company plans about $11 billion (roughly ¥1.7 trillion) in U.S. Steel investments through 2028 and projects no profit contribution from U.S. Steel in the fiscal year ending March 2026 due to weaker U.S. steel prices and a plant accident.