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  • Fortescue Metals Group (FMG) has completed a US$1.5 billion (roughly A$1.9 billion) bond offering
  • The iron ore giant initially sought to raise US$750 million (A$966 million) but doubled the size of the offering, citing high demand
  • The senior unsecured notes have an interest rate of 4.375 per cent and will mature in April 2031
  • Proceeds will be used to pay off the company’s 2022 senior unsecured notes and other general corporate purposes
  • Shares last traded at $20.30

Fortescue Metals Group (FMG) has completed a US$1.5 billion (roughly A$1.9 billion) bond offering.

Proceeds will be used to pay off the company’s 2022 senior unsecured notes as well as for general corporate purposes and may include the repayment of debt.

“Fortescue continues to deliver outstanding operational and financial performance which underpins our ongoing support from the U.S. Debt Capital Markets,” said CEO Elizabeth Gaines.

“Our balance sheet is structured on low cost, investment grade terms, maintaining flexibility to support ongoing operations and the capacity to fund future growth.”

The iron ore giant initially sought to raise US$750 million (A$966 million) but doubled the size of the offering, citing high demand.

The senior unsecured notes have an interest rate of 4.375 per cent and will mature in April 2031.

“The successful completion of this offering will refinance our earliest debt maturity, extend our weighted average maturity on terms consistent with our existing debt and further optimises Fortescue’s capital structure,” said Fortescue Chief Financial Officer Ian Wells.

“Our disciplined capital allocation framework provides for investment in future opportunities and the continued delivery of value to our investors,” he added.

FMG shares last traded at $20.30.

FMG by the numbers
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