Fortescue has finalised a landmark syndicated term loan facility worth close to $3 billion, with participation from Chinese, Australian and international lenders.
The transaction marks the first Renminbi-denominated (RMB) syndicated term loan undertaken by an Australian corporate, underscoring the strength of Fortescue’s long-standing commercial ties in China.
Renminbi, also known as the Chinese yuan, is the official currency of China.
Fortescue said the funds will be used “for general corporate purposes and support Fortescue’s ambitious decarbonisation agenda”.
“This isn’t just a financial transaction; it’s a signal of what is possible when partners are aligned in ambition,” Fortescue executive chairman Andrew Forrest said.
“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.
“China continues to lead the world in industrial scale and innovation. Fortescue shares that ambition and drive. This landmark RMB financing strengthens our long-standing partnerships with Chinese institutions and opens new frontiers for collaboration.”
Fortescue is a core supplier of iron ore to China and earns RMB revenues through its sales.
“This financing deepens our engagement with existing financial partners and further expands our banking syndicate to institutions with Renminbi-lending capabilities,” Fortescue group chief financial officer Apple Paget said.
“The exceptional demand through the syndication process is recognition of Fortescue’s strong credit profile, track record for operating excellence and disciplined capital allocation.
“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. It reinforces our position as responsible custodians of capital.”
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