Ferrexpo received a $15 million loan from the largest shareholder of Fevamotinico

The Swiss-headquartered mining company Ferrexpo, whose main interests are related to Ukrainian iron ore assets, announced the conclusion of an unsecured loan agreement for $15 million with its largest shareholder, Luxembourg—based investment company Fevamotinico. The deal will provide the company with immediate liquidity ahead of the completion of an approximately $100 million equity raising.

The loan will be used to cover Ferrexpo's working capital needs and support Ukrainian production, which resumed operations on September 7, using one pellet production line. The $15 million financing represents an advance payment of approximately $40 million of the Fevamotinico subscription portion as part of the planned fee средств.

The interest rate on the loan is 9.75% per annum.

The loan repayment period is 12 months. The principal amount of the debt and accrued interest are expected to be repaid by offsetting the amount owed to Fevamotinico by subscription after the issuance of new shares.

Financing is subordinated, therefore it will be provided after existing unsecured creditors Ferrexpo.

If the shareholders do not approve the fundraising At the general meeting scheduled for September 21, 2026, or if the placement agreement is terminated, Ferrexpo may decide to repay the loan by issuing new ordinary shares in accordance with applicable legal and regulatory requirements, including the prior approval of independent shareholders.

If the fundraising is not continued and the alternative share repayment mechanism is not implemented, the loan and accrued interest are payable in cash at the end of the term. Ferrexpo stated that in this case, it will need to raise additional financing or agree other repayment terms with Fevamotinico if the company is unable to pay with cash.

The financing followed Ferrexpo's announcement to raise approximately $100 million in equity, which was previously announced by SteelOrbis. The funds are intended to maintain the company's working capital and continue operating activities.