Fortescue receives landmark $3b loan

Fortescue (ASX: FMG) has secured a syndicated loan facility of $3b (RMB$14.2b) to support its ambitious decarbonisation agenda.

The loan facility comes from leading Chinese, Australian and international lenders.

This is the first RMB syndicated term loan of its kind by an Australian corporate — a landmark transaction that Fortescue says reflects the depth of its long-standing relationships in China.

Proceeds will be used for general corporate purposes and Fortescue’s decarbonisation efforts, including partnerships with Chinese suppliers and technology leaders.

Fortescue executive chairman Dr Andrew Forrest says this isn’t just a financial transaction — it’s a signal of what is possible when partners are aligned in ambition.

“As the US 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 said.

“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 group chief financial officer Apple Paget says this financing deepens the group’s engagement with existing financial partners and further expands its 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 said.

“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.”