Fortescue has secured a 14.2 billion yuan ($1.98 billion) loan to fund its decarbonization strategy and general corporate purposes.
The five-year syndicated loan is the first of its kind for an Australian company with unrestricted use of proceeds.
The deal signals Fortescue’s strategic pivot towards China amid a U.S. pullback from green energy investment.
Fortescue has secured a landmark 14.2 billion yuan ($1.98 billion) loan to accelerate its decarbonisation strategy, just weeks after cancelling green hydrogen projects in the U.S. and Australia. The five-year syndicated loan, fixed at an annual interest rate of 3.8%, marks a significant milestone in the miner’s deepening alignment with Chinese financial institutions.
The funding comes as Fortescue refocuses its clean energy ambitions and global strategy. In July, the company announced it would exit its green hydrogen initiatives in Arizona and Queensland—an announcement that closely followed founder and chairman Andrew Forrest’s high-profile visit to China alongside Australian Prime Minister Anthony Albanese.
“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,” said Forrest.
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Backed by major lenders including Bank of China and ICBC, the facility is being touted as the first of its kind for an Australian firm, with unrestricted use of proceeds—a move that provides Fortescue greater financial agility.
“This financing agreement strengthens Fortescue’s long-standing partnerships with Chinese institutions and opens new frontiers for collaboration,” Forrest added.
According to a Fortescue spokesperson, the loan will be deployed across general corporate purposes and the company’s decarbonization agenda. The deal reinforces China’s growing role in financing global energy transitions, especially as Western policy support appears to waver.
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