Fortescue (ASX:FMG) has secured a syndicated term loan facility of ¥14.2 billion ($3.03 billion) from Australian, Chinese, as well as other international lenders as the company advances its decarbonisation plans.
The loan hosts a five-year tenure plan with a fixed annual interest rate of 3.8%, with a repayment rate of 0.5% every six months to begin 18 months after the financial close.
Sydney branches for the Bank of China and the Industrial and Commercial Bank of China are the lead arrangers, underwriters, and bookrunners for this loan.
Executive Chairman Andre Forrest says that Fortescue’s strategy to streamline focus on advancing green technology aligns with China’s impact on industrial scale and innovation.
“This isn’t just a financial transaction. It’s a signal of what is possible when partners are aligned in ambition,” Forrest says.
“As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution.”
Group CFO Apple Paget says the loan allows Fortescue to expand its banking syndicate with Renminbi lending institutions.
“It marks another milestone in execution of our capital management strategy, diversifying funding sources, enhancing flexibility, and lowering our cost of capital, including achieving Fortescue’s lowest ever cost of debt,” Paget says.
Fortescue is a technology, energy, and metals group focused on commercialising decarbonisation across the sector.
Write to Maddison Elliott at Mining.com.au
Images: Fortescue
