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From Reuters:
Market sources told Reuters the miner had been prepared to pay up to 8.5 percent, well above its current average borrowing cost of about 5.3 percent, but Fortescue Chief Financial Officer Stephen Pearce denied it had offered this much.
… analysts pointed to the company’s ongoing support from Chinese steelmakers, who have pre-paid $1.6 billion for iron ore supplies to help shore up the company’s cashflow…Fortescue’s biggest shareholder behind billionaire founder Andrew “Twiggy” Forest, China’s Hunan Valin Iron and Steel Group, said last week it was “extremely positive” about Fortescue.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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