08:36 AM EDT, 07/03/2025 (MT Newswires) -- Nippon Steel aims to raise 800 billion yen ($5.56 billion) in two separate subordinated loans to help fund its $14.9 billion acquisition of US Steel, the Japanese company said in a news release on Thursday.

Nippon said 500 billion yen has been earmarked to partially repay a 2 trillion yen bridge loan that was secured in June in relation to the acquisition.

The 500 billion yen loan will be covered by Mitsubishi UFJ Financial Group ( MUFG ) , Sumitomo Mitsui Financial Group ( SMFG ) , Mizuho Financial Group, as well as by Sumitomo Mitsui Trust Group, Reuters News reported, citing a Nippon Steel spokesperson.

Nippon Steel did not immediately respond to a request for confirmation from MT Newswires.

A separate 300 billion yen loan will refinance a previous 450 billion yen subordinated loan, Nippon Steel said.

The remaining 1.5 trillion yen of the bridge loan will be financed through a mix of methods, depending on an assessment of interest rates, market conditions and other factors, Reuters reported, citing the spokesperson.

Following the US Steel acquisition, Nippon Steel had estimated that its debt-to-equity ratio would rise to about 0.8 from 0.35 as of March 31. The company aims to reduce the ratio to the 0.7 range during fiscal 2025.