Fortescue Metals taps US green bond market with USD-800m offering - report

Australian iron ore giant Fortescue Metals Group Ltd (ASX:FMG) has sold USD 800 million (EUR 733.9m) worth of green bonds as part of a larger bond offering in the US, the Sydney Morning Herald reports.

A person familiar with the matter told the newspaper that a USD-1.5-billion bond deal with two tranches had been sold last week. Its green component represents the company’s first offering of such financial instruments.

The green bonds mature in 10 years.

According to the insider, Fortescue Metals will use the proceeds to finance or refinance new or existing green projects, including renewable energy, energy efficiency, battery storage and others.

Under a plan unveiled in 2020, the Aussie group aims at reaching net-zero operational emissions by 2040. The company is also working to decarbonise by incorporating greener technologies into its operations.

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