Ferrexpo raises $15M short-term loan from 49.27% shareholder

Ferrexpo plc (LSE: FXPO) has secured a $15 million unsecured loan facility from its largest shareholder, Fevamotinico S.à r.l., which holds 49.27% of the company’s voting rights. The facility, structured as a subordinated loan, provides immediate liquidity as the company prepares for an upcoming $100 million fundraising announced on September 4. The loan represents a pre-payment of part of Fevamotinico’s $40 million subscription under that fundraising effort, with principal and accrued interest repayable through set-off against future payments owed by Fevamotinico under the subscription agreement upon admission to trading. If the fundraising fails to secure shareholder approval at the company’s scheduled general meeting on September 21 or if the placing agreement is terminated, Fevamotinico may instead repay the loan by issuing new ordinary shares at the issue price. Should the fundraising not proceed, the full loan amount—including accrued interest—would be due for cash repayment by maturity, unless alternative share-based arrangements are implemented. The transaction is governed by UK Listing Rules as a related-party deal and is considered fair and reasonable by the company’s board, with independent advice provided by BDO LLP. The loan carries a 9.75% annual interest rate and matures 12 months after issuance. Production operations at Ferrexpo resumed on Sunday, with the financing intended to support ongoing operational and strategic initiatives ahead of the fundraising’s completion.