 Syndicated Term Loan Facility of 14.2 billion (approximately US$2 billion) with participation from leading Chinese, Australian and international lenders. It says this is the first RMB Syndicated Term Loan of its kind by an Australian corporate – “a landmark transaction that reflects theRead More){kind=link}
Fortescue Ltd has advised of the successful syndication of a Renminbi-denominated (RMB) Syndicated Term Loan Facility of 14.2 billion (approximately US$2 billion) with participation from leading Chinese, Australian and international lenders.
It says this is the first RMB Syndicated Term Loan of its kind by an Australian corporate – “a landmark
transaction that reflects the depth of Fortescue’s long-standing relationships in China.”
Proceeds will be used for general corporate purposes and support Fortescue’s ambitious
decarbonisation agenda, including partnerships with Chinese suppliers and technology leaders. This includes its US$400 million contract with XCMG for zero emission heavy mobile equipment. Fortescue is also a core supplier of iron ore to China and generates RMB revenues through its iron ore
sales.
Fortescue Executive Chairman, Dr Andrew Forrest AO, said: “This isn’t just a financial transaction.
It’s a signal of what is possible when partners are aligned in ambition. 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.”
He adds: “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.”
Group Chief Financial Officer, Apple Paget, said: “This financing deepens our engagement with existing
financial partners and further expands our banking syndicate to institutions with Renminbi lending
capabilities. The exceptional demand through the syndication process is recognition of Fortescue’s
strong credit profile, track record for operating excellence and disciplined capital allocation.”
She added: “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.”