TOKYO: Japan’s Nippon Steel said on Tuesday it planned to raise ​550 billion yen ($3.55 billion) via a euro-yen convertible bond sale, as the company is looking for funding to finance its business operations.

The bond issue is planned ‌in two equal ‌tranches of ​275 billion ‌yen ⁠each ​maturing in ⁠2029 and 2031, bearing stock acquisition rights and zero interest, the company said in regulatory documents.

Reuters reported this month on Nippon Steel’s plans ⁠for a convertible bond sale, ‌citing ‌sources, as the company ​seeks funding to ‌replace a bridge loan ‌it took out to buy U.S. Steel last year for $15 billion. It also pledged additional investments into ‌the U.S. asset to win approval for the ⁠merger.

This ⁠month, Nippon Steel widened its net loss forecast for the financial year to end-March to 70 billion yen due in part to a fire at a blast furnace and because of charges related to its acquisition of ​U.S. ​Steel.

Reuters