(Alliance News) - FTSE 250-listed Ferrexpo PLC said Wednesday it has approved the early repayment of its outstanding pre-export finance facility.
As a result of Wednesday's repayment, the facility has been cancelled.
The PXF facility agreement was signed in 2018 and repayment was scheduled to take place quarterly between 2020 and 2022. At the end of 2020, Ferrexpo had USD257 million of debt drawn on its PXF facility.
"Early repayment of this facility reflects the strong performance of the group's operations, including recent growth in both the group's production volumes and product quality, following the recent completion of investments throughout the group's operations," Ferrexpo explained.
The Swiss-based commodity trading and mining company added: "Through previous investments, and the group's ongoing growth programme, the group is able to take full advantage of recent strength in the iron ore market, with particular demand at this time for high grade iron ores such as the group's 65% Fe iron ore pellets, which represented 99% of total production in 2020, from 96% in 2019."
Jim North, interim chief executive, noted the early repayment of this facility brings an end to its deleveraging programme.
Shares in Ferrexpo were down 1.3% in London on Wednesday at 430.80 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Ferrexpo (FXPO)