Iron-Ore Giant Fortescue Makes Foray Into Green-Bond Market

Iron-Ore Giant Fortescue Makes Foray Into Green-Bond Market

Iron-ore giant Fortescue Metals Group Ltd. sold $1.5 billion in bonds that include a portion earmarked to benefit the environment, the latest effort by its billionaire founder Andrew Forrest to pivot into the booming green market.

The Australian miner, through its FMG Resources (August 2006) Pty Ltd. unit, tapped the U.S. high-yield market with a two-part bond deal on Wednesday, according to a person with knowledge of the matter.

Iron-Ore Giant Fortescue Makes Foray Into Green-Bond Market

The 10-year tranche is a $800 million green bond, said the person, who asked not to be identified as the details are private. It’s the first such debt from the company and the biggest dollar-denominated green junk bond tranche since early December, according to data compiled by Bloomberg.

Climate Bonds Initiative, a London-based organization that sets green-bond standards, estimates annual sales could reach fresh highs of between $900 billion and $1 trillion by the end of this year — and as much as $5 trillion by 2025.

Read Also: Germany to buy Israeli or US Missile Defence System

Do you have any questions, suggestions, or other contributions? Kindly use the comment box provided below for all your contributions. You are also encouraged to please kindly share this article with others you feel can benefit from this information if found useful enough as we may not be able to reach everyone at the same time. Thank you so much for sharing!

Leave a Reply

Your email address will not be published. Required fields are marked *