Nippon Steel increased the issue of convertible bonds to a record $3.85 billion

Nippon Steel, Japan's largest steel company, has decided to increase the issue of convertible bonds to 600 billion yen ($3.85 billion) from the previously announced 550 billion yen, based on investor demand and market conditions.

Reuters.

The bonds will be placed in two equal tranches maturing in 2029 and 2031, Nippon Steel said in a statement. The bonds are issued with a zero coupon, but they give the right to purchase shares of the company.

Nippon Steel plans to sell the securities abroad, most of them in Europe and Asia.

The release is organized by Nomura, Goldman Sachs and Bank of America.

According to Nikkei, in total, Nippon Steel wants to raise about 1.3 trillion yen. Last week, the publication reported that it could sell 300 billion yen worth of shares in other companies. The steel giant has already pulled out of more than 80% of its strategic investments. within the framework of this line, about 1.3 trillion yen. The initial part was repaid through hybrid loans in yen and other instruments.

Over the next five years, the company expects to spend about 6 trillion yen on capital and business investments, including capital investments in US Steel at the level of $11 billion. The amount of interest paid has doubled to 5.3 trillion yen.

The company's shares fell by 1.5% following the results of trading on Tuesday.