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

  • Its billionaire founder pivoting ore business into green power
  • Firm aims to reach net-zero greenhouse gas emissions by 2040
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Fortescue on Accelerated Path for Net-Zero Emission: CEO
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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. 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.