Swiss-headquartered miner Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that it has entered into a $15 million unsecured loan agreement with its largest shareholder Luxembourg-based investment company Fevamotinico, providing the company with immediate liquidity ahead of the completion of its approximately $100 million equity fundraise.
The loan will support Ferrexpo's working capital requirements and its Ukrainian production operations, which restarted on September 7 using one pellet line. The $15 million financing represents a prepayment of part of Fevamotinico's approximately $40 million subscription under the planned fundraise.
Loan carries 9.75 percent annual interest
The loan carries an annual interest rate of 9.75 percent and has a maturity of 12 months. The principal and accrued interest are expected to be repaid through a set-off against the amount Fevamotinico owes under its subscription agreement once the new shares are admitted.
The financing is subordinated and will therefore rank behind Ferrexpo's existing unsecured creditors.
If shareholders do not approve the fundraise at the general meeting scheduled for September 21, 2026, or if the placing agreement is terminated, Ferrexpo may elect to repay the loan through the issuance of new ordinary shares, subject to applicable legal and regulatory requirements, including prior approval from independent shareholders.
If the fundraise does not proceed and the alternative share repayment arrangement is not implemented, the loan and accrued interest will become repayable in cash at maturity. Ferrexpo said it would need to obtain additional funding or agree alternative arrangements with Fevamotinico if it were unable to make the cash repayment.
The financing follows Ferrexpo's announcement of an approximately $100 million equity fundraise, as SteelOrbis previously reported, which is intended to support the company's working capital and continued operations.
