Ferrexpo's Largest Shareholder Steps In With Bridge Loan as Miner Navigates Resumed Listing

Ferrexpo gets $15M bridge loan from top investor Fevamotinico, while FCA reinstates its listing after $100M equity raise.

The London-listed iron ore pellet producer has secured a $15 million unsecured bridge loan from its biggest investor, Fevamotinico Sarl, buying time before the formal proceeds of a recently completed equity raise flow into the company's coffers. The interim financing, which carries a 9.75 percent annual interest rate and matures twelve months from drawdown, effectively functions as an advance on a larger subscription commitment rather than new incremental debt.

Fevamotinico had pledged to subscribe for roughly $40 million worth of new shares as part of the approximately $100 million capital raise that closed on 4 September. The bridge facility now releases a portion of those funds ahead of schedule, a move the company says addresses immediate liquidity requirements while the broader transaction works its way through final formalities.

The need for such stopgap financing underscores the precariousness of Ferrexpo's position. Management has been candid that operating conditions in Ukraine will remain challenging through 2026, and that additional capital is required to meet near-term obligations and sustain production at reduced levels over the coming eighteen months.

A Listing Restored

The emergency financing arrives against the backdrop of a significant regulatory milestone: the UK Financial Conduct Authority reinstated Ferrexpo's securities to the Official List yesterday at 7:30 GMT/BST, formally ending a period of uncertainty about the company's continued existence on the London exchange.

That reinstatement was conditional on the successful completion of the equity raise, which saw Ferrexpo issue 269,309,091 new ordinary shares through a placement and a further 179,539,393 shares through an open offer, both priced at 16.5 pence per share. In total, the company has issued 448.8 million new shares.

Ukrainian businessman Andriy Verevskyi anchored the transaction with a $50 million cornerstone commitment and will hold 224.4 million of the new shares once the deal is fully executed. Fevamotinico, already the largest existing shareholder, subscribed for an additional 179.54 million new shares at the issue price.

Proceeds are earmarked to strengthen the balance sheet, restart production at Ukrainian sites, catch up on deferred capital expenditure, and preserve jobs.

Production Restart and a Pivot in Export Strategy

Over the weekend, Ferrexpo mobilised to restart operations at its Ukrainian facilities in parallel with the resumption of trading. The company signalled a strategic shift in its export approach, announcing plans to concentrate on European customers — a direct response to sustained attacks on ports and vessels in the Black Sea that have rendered the traditional export corridor increasingly unreliable.

The logistics pivot reflects a pragmatic acceptance that the Black Sea route will not normalise anytime soon. While alternative transport options are likely to carry higher costs, the repositioning offers investors a degree of supply chain predictability that had been sorely lacking.

A Deteriorating Financial Picture

The capital raise and bridge financing must be viewed through the lens of Ferrexpo's sharply weakened 2025 financial performance. Revenue fell 16 percent to $787 million, down from $933 million the prior year, weighed down by lower realised prices and a greater proportion of iron ore concentrate in the sales mix — a product form that generates inferior returns compared with other offerings.

The underlying EBITDA decline was steeper still, plunging 60 percent to $28 million from $69 million in the previous year, as reduced sales volumes and the margin-dilutive concentrate mix took their toll.

Key Dates Ahead

Shareholders can expect the 2025 annual report to land around 10 September, with an extraordinary general meeting scheduled for 21 September at Herbert Smith Freehills Kramer's London offices. The meeting will consider formal approval of the capital measures, and the new shares are slated for admission to trading on 22 September.

The bridge loan from Fevamotinico sends a clear signal that the company's largest backer is willing to step in at short notice. Whether the combined firepower of the equity raise and interim financing proves sufficient to carry the miner through its planned period of reduced operations until conditions in Ukraine stabilise remains the central question for investors.