Ferrexpo board of directors decided to abandon pre-export lending
Ferrexpo's board of directors has announced that it has approved an early repayment of its outstanding pre-export credit facility (PXF) due today, and a subsequent waiver of the credit facility.
The credit line agreement was signed in 2018 and was scheduled to be repaid quarterly from 2020 to 2022. As of December 31, 2020, Ferrexpo had USD 257 million in outstanding PXF credit line.
According to Ferrexpo, thanks to previous investments and the group's ongoing growth program, the company can take full advantage of the recent growth in the iron ore market, with a particular demand for high-quality iron ores such as 65% iron ore pellets currently being seen. iron, which accounted for 99% of total production in 2020.
“It's nice that this will put an end to the group's debt reduction program. Following this announcement, we are well positioned to continue investing in our assets, ensuring continued growth in pellet volumes and pellet quality, while continuing to generate returns for shareholders, ”said Jim North, Interim CEO of Ferrexpo.
Ferrexpo plc is a Swiss raw materials and mining company, which is the third largest exporter of iron ore pellets in the world. Ferrexpo's base of operations is located in central Ukraine, where it owns three iron ore mines and an iron ore pellet mill.