By Kazuma Nagahara / Yomiuri Shimbun Staff Writer

Nippon Steel Corp. announced Wednesday that it has received a total of about 900 billion yen in loans from Japanese banks to support its financing for the acquisition of United States Steel Corp.

The banks are the government-affiliated Japan Bank for International Cooperation (JBIC), the three megabanks -- MUFG Bank Ltd., Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd. -- and Sumitomo Mitsui Trust Bank Ltd.

JBIC said in a separate announcement the same day that it had signed a loan agreement amounting to 3.7 billion U.S. dollars with Nippon Steel.

By providing financial backing to Nippon Steel through a public-private partnership, the banks intend to boost growth investments aimed at strengthening the supply chain of steel products, according to sources.

Nippon Steel completed its acquisition of U.S. Steel in June last year. The total acquisition cost was 14.1 billion dollar (about 2 trillion yen).

This marked the largest-ever investment project for Nippon Steel, and the entire acquisition cost was financed through bridge loans, which typically carry higher interest rates than standard loans. Since the loans had to be repaid within one year, the company had been negotiating for the financing behind the scenes.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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March 18, 2026 08:14 ET (12:14 GMT)

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