Loan for Joint Steelmaking Business between Nippon Steel Corporation and ArcelorMittal S.A. of Luxembourg through ArcelorMittal Nippon Steel India Limited of India
Supporting Steel Business of Japanese Company in India

• Region: Asia
• Manufacturing and Services
• Overseas Investment Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 30 a loan agreement amounting to up to USD3,000 million with AMNS Luxembourg Holding S.A. (AMLH) of Luxembourg, a joint venture between Nippon Steel Corporation (Nippon Steel) and ArcelorMittal S.A. (AM) of Luxembourg. The loan is co-financed with MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., and Mizuho Bank Europe N.V., bringing the total co-financing amount to USD5,000 million.
     
2. The loan is intended to finance part of the funds necessary for Nippon Steel and AM to make capital investment in an integrated steel mill^*1 in western India belonging to ArcelorMittal Nippon Steel India Limited (AM/NS India)^*2, an Indian subsidiary of AMLH, as part of their joint steelmaking business through AM/NS India.
     
3. The steel market in India is expected to make steady growth along with its economic and population growth. At the same time, localization of production of steel products is progressing based on the Government of India's Make in India campaign for the protection of domestic industry. Through AM/NS India, which was India's fifth largest crude steel producer in 2021, Nippon Steel aims to capture growing steel demand in India in the mid to long term while contributing toward the Make in India campaign as a member of India's steel industry. The loan will support Nippon Steel's overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
     
4. As Japan's policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses in collaboration with private financial institutions by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
     

Note

1. *1 
   In a steel mill, manufacturing of pig iron from iron ore, steel making, rolling, and processing are conducted in an integrated manner.
2. *2 
   Nippon Steel and AM acquired the Indian company Essar Steel India Limited (Essar) in December 2019, upon which Essar was renamed ArcelorMittal Nippon Steel India Limited. See Press Release on March 17, 2020.