Fortescue Secures RMB 14.2 Billion Syndicated Term Loan

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Stock Fortescue Ltd (FMG.ASX)
Release Time 8 Aug 2025, 8:21 a.m.
Price Sensitive Yes
 Fortescue Secures RMB 14.2 Billion Syndicated Term Loan
Key Points
  • Landmark RMB 14.2 billion syndicated term loan facility
  • Supports Fortescue's decarbonisation agenda and partnerships with Chinese suppliers
  • Diversifies funding sources, enhances flexibility, and lowers cost of capital
Full Summary

Fortescue Ltd (ASX: FMG) has announced 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. This is the first RMB Syndicated Term Loan of its kind by an Australian corporate, reflecting the depth of Fortescue's long-standing relationships in China. The proceeds will be used for general corporate purposes and to support Fortescue's ambitious decarbonisation agenda, including partnerships with Chinese suppliers and technology leaders. Fortescue is a core supplier of iron ore to China and generates RMB revenues through its iron ore sales. Fortescue's Executive Chairman, Dr Andrew Forrest AO, stated that this transaction is a signal of what is possible when partners are aligned in ambition, and that it strengthens Fortescue's long-standing partnerships with Chinese institutions and opens new frontiers for collaboration. The Group Chief Financial Officer, Apple Paget, highlighted that the exceptional demand through the syndication process is recognition of Fortescue's strong credit profile, track record for operating excellence and disciplined capital allocation. The financing deepens Fortescue's engagement with existing financial partners and further expands its banking syndicate to institutions with Renminbi lending capabilities, marking another milestone in the execution of its capital management strategy, diversifying funding sources, enhancing flexibility and lowering its cost of capital, including achieving Fortescue's lowest ever cost of debt.