Japanese steel manufacturer Nippon Steel will raise 800 billion yen through two subordinated loans. This financing will partially cover its US$14.9 billion acquisition of U.S. Steel and refinance existing debt.

Of the total, 500 billion yen will help repay a 2 trillion yen loan secured for the acquisition. The remaining 300 billion yen will refinance a prior 450 billion yen subordinated loan. Five major Japanese banks will provide the funds by September 18, 2025.

Nippon Steel plans to finance the remaining 1.5 trillion yen of the acquisition through various instruments, aiming to avoid earnings per share dilution.

After the deal is completed, the company's debt-to-equity ratio rose from 0.35 to 0.8. They target a reduction to 0.7 by March 2026 through cash flow and asset sales.