Fortescue Secures ¥14.2 Billion Loan to Advance Decarbonization Strategy

Fortescue has completed a syndicated loan agreement valued at ¥14.2 billion (approximately US $1.98 billion), reinforcing its commitment to decarbonization and marking a significant milestone in its expanding relationship with Chinese financial institutions. The five-year facility carries a fixed annual interest rate of 3.8% and follows the company’s recent decision to exit green hydrogen initiatives in Arizona and Queensland. This strategic shift came shortly after Chairman Andrew Forrest’s visit to China, which coincided with Australian Prime Minister Anthony Albanese’s diplomatic engagement.

This financing move reflects Fortescue’s evolving clean energy strategy and its recalibrated global outlook. Forrest commented that while the United States appears to be stepping back from investment in what he called the “world’s greatest industry,” China and Fortescue are jointly advancing the technologies needed to drive a worldwide green industrial revolution.

The loan, backed by major institutions such as Bank of China and ICBC, is regarded as a landmark transaction for an Australian company. It provides Fortescue with unrestricted access to the funds, thereby enhancing its operational agility. Forrest noted that the agreement not only strengthens Fortescue’s enduring relationships with Chinese banks but also sets the stage for broader cooperation.