Fortescue (ASX:FMG) has priced US$1.5 billion ($2.15 billion) of senior unsecured notes, days after its chartered bulk carrier completed Australia’s first green-ammonia bunkering operation.
The notes carry a 7% coupon and mature on 15 November 2032. They will be issued by Fortescue Treasury and guaranteed by the parent company.
Settlement is expected on 12 November, subject to customary conditions.
Fortescue plans to use the proceeds for general corporate purposes, which may include repaying existing debt.
The company has entered cross-currency swaps covering the principal and interest payments. These convert its US-dollar obligations into offshore yuan exposure at an effective fixed interest rate of approximately 3.9% annually.
Green ammonia bunkering
Separately, Fortescue’s chartered Mineral Europa received certified green ammonia during a ship-to-ship transfer at the Port of Port Hedland on 2 November.
Pilbara Ports describes the 300m vessel as the world’s first ammonia-powered dry bulk carrier.
The two-hour operation was undertaken by Fortescue, Pilbara Ports, and vessel operator CMB.TECH (NYSE:CMBT). Mineral Europa will load Fortescue iron ore before travelling to China.
The operation follows an ammonia transfer trial conducted at the Port of Dampier in 2024 and tested refuelling procedures in an operating port environment. It does not establish the commercial availability or lifecycle emissions performance of green ammonia at scale.
Fortescue previously agreed to charter up to 12 Newcastlemax vessels from CMB.TECH. Three are expected to use dual-fuel ammonia engines, while the remaining nine can be converted to ammonia propulsion.
The bunkering follows other moves by Fortescue’s energy business, including a 20-year agreement to supply electricity to PLS Group (ASX:PLS) at its Pilgangoora lithium operation, as previously reported.
Fortescue is a Pilbara iron ore producer expanding into green energy and technology.
Write to France Pinzon at Mining.com.au
Main image: CMB.TECH
