Fortescue Metals Group Ltd’s
(ASX:FMG) has decided to abandon its proposed $1 billion credit facility due to weakness in credit market conditions.
The iron ore miner says while it received significant investor interest the proposed offers did not result in terms and conditions that met the company's expectations.
Fortescue also adds that it has significant cash on hand and the decision not to proceed with the financing does not impact its plans to expand production to 155 million tonnes per annum.
The company has received commitments from a syndicate of banks for a $US500 million three year senior unsecured revolving credit facility, expected to be completed by early June 2011.
In the first half of the 2011 financial year Fortescue Metals booked a net profit of $309 million.
