The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 10 a loan agreement amounting to USD3,700 million (JBIC portion) with Nippon Steel Corporation (Nippon Steel). The loan is co-financed with MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, bringing the total co-financing amount to approximately JPY900 billion.
The loan is intended to finance part of the funds necessary for securing shares in connection with the merger of Nippon Steel’s U.S. subsidiary and United States Steel Corporation (U.S. Steel).
Nippon Steel aims to achieve a global annual crude steel production capacity of 100 million tons. Nippon Steel plans to secure and expand its production capacity in markets with strong growth potential and suited to its technological and product strengths. Based on its overseas business strategy, it has initiated a partnership with U.S. Steel. The United States ranks as the world’s third-largest consumer of steel and the largest market for high-grade steel. Nippon Steel will enhance U.S. Steel’s competitiveness by introducing its leading-edge operational, equipment, and product technologies cultivated in Japan to date to meet the growing demand for high‑grade steel in the U.S.
This loan, which financially supports the overseas business of Nippon Steel, will contribute toward maintaining and strengthening the international competitiveness of the Japanese steel industry. Furthermore, as steel is a core industry underpinning the competitiveness of a wide range of sectors, this loan is expected to help strengthen the resilience of the steel supply chain. It is also expected to support closer economic and national security cooperation between Japan and the U.S., which is a strategic partner for Japan.
As Japan’s policy-based financial institution, JBIC will continue to actively support the expansion of business opportunities of Japanese companies in collaboration with private financial institutions.
