Fortescue secures yuan-denominated green financing

Loan to support Australian borrower's decarbonisation agenda.

Perth-headquartered Fortescue, which is working to accelerate commercial decarbonisation through heavy industry, is being backed by multiple lenders via a renminbi-denominated (RMB) syndicated term loan facility worth approximately $2b (RMB14.2b).

In a regulatory filing, the green technology, energy, and metals company noted: "Proceeds will be used for general corporate purposes and 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."

Arrangers of the syndicated term loan include Bank of China Limited and Industrial and Commercial Bank of China Limited.

Dr Andrew Forrest AO, executive chair at Fortescue, commented: "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."

Forrest went on to describe the loan as a landmark RMB financing, which is said to be the first of its kind by an Australian corporate.

In July, Chinese financial authorities released a catalogue of green finance-supported projects in China, offering guidance on the issuance of green loans and bonds.