Fortescue Ltd (ASX:FMG) has priced an offering of US$1,500 million in Senior Unsecured Notes at a coupon of 7.0 per cent per annum, maturing in November 2032, with proceeds to be swapped into offshore Renminbi resulting in an effective interest rate of approximately 3.9 per cent per annum, the company disclosed on 5 November 2026.

Key Points

  • Fortescue priced US$1,500 million of Senior Unsecured Notes at a coupon of 7.0% per annum, maturing 15 November 2032.
  • Cross-currency swaps covering the full US$1,500 million principal convert obligations into an approximately CNH9.95 billion fixed-rate CNH liability at an effective rate of approximately 3.9% per annum.
  • Notes will be issued by Fortescue Treasury Pty Ltd, a wholly owned subsidiary, and guaranteed by Fortescue Ltd.
  • Settlement of the Notes is expected to occur on 12 November 2026, subject to customary closing conditions.
  • Net proceeds are intended for general corporate purposes, which may include repayment of indebtedness.

Notes Offering Terms and Structure

The Senior Unsecured Notes carry a six-year term with a maturity date of 15 November 2032 and a US dollar coupon of 7.0 per cent per annum. The Notes will rank pari passu with all existing and future senior unsecured indebtedness of Fortescue. The issuer is Fortescue Treasury Pty Ltd, Fortescue's wholly owned subsidiary, with Fortescue Ltd acting as guarantor. Settlement is expected on 12 November 2026, subject to customary closing conditions, according to the filing.

Cross-Currency Swap Details

Fortescue has entered into cross-currency swaps covering the full US$1,500 million principal amount and associated interest payments for the six-year term of the Notes. The swaps convert the US dollar obligations into a fixed-rate offshore Renminbi (CNH) liability of approximately CNH9.95 billion. The effective fixed CNH interest rate following the swaps is approximately 3.9 per cent per annum, as disclosed in the filing. The swaps span the full six-year term of the Notes.

Use of Proceeds and CFO Statement

Fortescue intends to use the net proceeds from the offering for general corporate purposes, which may include repayment of indebtedness. Chief Financial Officer Apple Paget said the transaction "demonstrates the continued support for Fortescue in the US debt capital markets and extends our debt maturity profile." Paget added that by combining the issuance with cross-currency swaps, Fortescue has "secured funding at an effective rate of approximately 3.9 per cent, further optimising our capital structure and maintaining flexibility to support our operations and future investment."