Japan's largest steel company Nippon Steel has decided to increase the volume of its convertible bond issue to 600 billion yen ($3.85 billion) from a previously announced 550 billion yen, based on investor demand and market conditions.
Reuters.
The bonds will be placed in two equal tranches with maturities in 2029 and 2031, Nippon Steel said in a statement. The bonds are issued with a zero coupon, but give the right to purchase shares of the company.
Nippon Steel plans to sell the securities abroad, the main part - in Europe and Asia. There will be no placement in the United States.
The organizers of the issue are Nomura, Goldman Sachs and Bank of America.
According to Nikkei, Nippon Steel wants to raise a total of about 1.3 trillion yen. Last week, the publication reported that it could sell shares of other companies worth 300 billion yen. The steel giant has already exited more than 80% of its strategic investments. within this line by approximately 1.3 trillion yen. The initial part was repaid through hybrid yen loans and other instruments.
Over the next five years, the company expects to spend about 6 trillion yen on capital investmentsInvestments and business investments, including capex in US Steel at the level of $11 billion, which pays interest, doubled to 5.3 trillion yen.
The company's shares fell 1.5% at the end of trading on Tuesday.
