AusRAIL, Market Sectors

Fortescue on track with $2.7bn underwriting deal

<p>It would seem nothing can now stop Fortescue Metals Group becoming the third force in Australia’s iron ore scene after a $2.7bn underwriting deal made with Citigroup Global Markets.</p> <p>The deal, to be settled on Friday (August 17), heralds an acceleration of major infrastructure developments in Western Australia’s Pilbara region.</p> <p>&#8220Proceeds from the debt offering will be used to finance construction costs for developing Fortescue’s Cloud Break and Christmas Creek iron ore mines and the related rail and road infrastructure,&#8221 the company said yesterday (Monday, August 14).</p> <p>Fortescue said it had already spent $217m, including work on port facilities on the project up to last month. </p> <p>Last month, US investor Leucadia National Corp took a 9.99% stake in Fortescue through a US$400m ($535m) investment after Hong Kong’s Noble Group failed to seal a deal aimed at marketing iron ore to Chinese steel producers.</p> <br />