8th Sep 2026 11:20
(Alliance News) - Ferrexpo PLC on Tuesday announced a new loan agreement with Fevamotinico Sarl, which will provide "immediate access to liquidity".
In response, its shares were up 6.6% at 31.14 pence late on Tuesday morning in London.
The Baar, Switzerland-headquartered iron ore producer said Fevamotinico, its biggest shareholder with a 44% to 49% stake, will make an unsecured loan facility worth USD15 million available.
This, Ferrexpo explained, is intended to provide "immediate access to liquidity" before it completes the approximately USD100 million fundraise announced on Friday.
The placing and subscription comprised 448.8 million shares at 16.5p each, of which Fevamotinico subscribed for 179.5 million.
"The loan represents a pre-payment of part of Fevamotinico's approximately USD40 million subscription under the fundraise," the Ukraine-focused company noted.
Ferrexpo said the loan will also support its working capital requirements and production operations, which restarted on Monday.
The facility's interest rate is 9.75% per year, and it matures in 12 months' time. It will be repayable through "set-off against the amounts owing by Fevamotinico to the company under the subscription agreement upon admission."
Ferrexpo said that if the resolutions to approve the fundraise are not passed at its general meeting on September 21, or if the placing agreement is terminated, it may repay the loan by issuing new ordinary shares.
Fevamotinico has agreed to not take steps to recover repayments in cash before the maturity date.
By Emma Curzon, Alliance News reporter
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