Fortescue secures landmark $1.98B loan to accelerate decarbonisation

Fortescue has just signed a US $1.98B yuan-denominated syndicated loan to supercharge its decarbonisation plans. This milestone comes just weeks after the company made the tough call to wind down its green hydrogen projects in Arizona and Queensland, part of a strategic reshaping of its clean energy portfolio.

Loan with no restrictions

The five-year facility, carrying a fixed interest rate of 3.8% p.a., is backed by a powerhouse group of Chinese, Australian, and international lenders, including Bank of China and ICBC. Notably, this is the first time an Australian company has secured a yuan loan with no restrictions on how proceeds are used, giving Fortescue the flexibility to fund both corporate needs and green transition initiatives.

Advancing the green technology

Chairman Andrew Forrest recently travelled to China alongside Australian Prime Minister Anthony Albanese, strengthening ties with Chinese partners. On announcing the deal, he praised China’s industrial scale, innovation, and commitment to green technology:
“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 sees this financing as more than just capital, it’s a platform for deepening collaboration between Fortescue and Chinese institutions, and a statement about who’s stepping up to lead the next chapter in the global energy transition.