Nippon Steel’s $3.9 Billion Deal Jumpstarts Japan’s Convertible Bond Market

Nippon Steel Corp.’s record-breaking convertible bond offering is highlighting the quest of Japanese companies for cheaper funding than increasingly expensive traditional debt, which sets the stage for more such deals.

Japan’s largest steelmaker on Tuesday raised 600 billion yen ($3.9 billion) from an offering of bonds that can be converted into stock, more than it initially planned on the back of strong demand. The proceeds will help repay loans taken out for its acquisition of United States Steel Corp.