Fortescue launches ponzi-bond

Tuesday, 17 March 2015

Fortescue Metals Group has launched a $US2.5 billion bond offer as it seeks to bolster its balance sheet and extend the maturity of its debt profile.

The world’s fourth largest exporter of iron ore said proceeds from the senior secured notes offering would be used to repay existing 2017, 2018 and a portion of 2019 senior unsecured notes.

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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.