Fortescue Secures $2B Yuan Loan for Green Energy Plans

Industry Insights from Next Move Strategy Consulting

On Friday, Australia’s Fortescue announced it had secured a 14.2-billion-yuan ($1.98 billion) loan denominated in Chinese currency to accelerate its decarbonisation initiatives, just weeks after abandoning its green hydrogen projects in the U.S. and Australia.

The loan deal comes as the world’s fourth-largest iron ore producer restructures its clean energy portfolio, amid the United States’ reduced focus on green energy under the Trump administration.

Fortescue Strengthens Green Tech Ties with China Amid U.S. Pullback

In July, Fortescue revealed plans to wind down its green hydrogen projects in Arizona, U.S., and Queensland, Australia—just a week after its billionaire founder and chairman, Andrew Forrest, accompanied Australian Prime Minister Anthony Albanese on a visit to China.

On Friday, Forrest—widely known as “Twiggy”—praised China’s industrial scale, innovation, and commitment to green technology investment, highlighting his company’s growing collaboration with Chinese institutions.

“As the United States retreats from investing in what will become the world’s most significant industry, China and Fortescue are moving forward with the green technology needed to drive the global green industrial revolution,” Forrest stated.

Fortescue Secures Landmark Decarbonisation Loan

Forrest said the financing deal reinforces Fortescue’s long-standing relationships with Chinese institutions and paves the way for new areas of collaboration.

Key Details of Fortescue’s Groundbreaking Loan Facility

• Loan Structure: A five-year syndicated term-loan facility carrying a fixed annual interest rate of 3.8%.

• Lenders Involved: Supported by major Chinese, Australian, and international banks, including the Bank of China and the Industrial and Commercial Bank of China (ICBC).

• Unique Feature: According to a Fortescue spokesperson, this is the first loan of its kind for an Australian company where the use of proceeds is unrestricted.

The company stated that the facility will be used to support its general corporate activities as well as its decarbonisation initiatives.

Conclusion

Fortescue’s landmark financing marks a pivotal step in advancing its decarbonisation goals while strengthening strategic ties with China amid shifting global energy priorities.

Source: https://www.reuters.com/

Prepared by: Next Move Strategy Consulting