Ferrexpo Taps Major Shareholder for $15 Million Bridge as $100 Million Rights Issue Awaits Shareholder Vote
Published on 09/11/2026 at 03:40 | Editorial boerse-global.de
Ferrexpo has turned to its largest investor for short-term liquidity while it waits for a broader recapitalization to clear its final hurdles. The Ukrainian iron ore pellet producer said Tuesday it has agreed an unsecured $15 million loan facility with Fevamotinico S.à r.l., a cash injection intended to keep operations running until a planned $100 million equity raise is formally wrapped up.
The company cautioned, however, that there is no certainty the facility will actually be drawn — a caveat that warrants attention.
Production Restarts, but Only Partially
The bridge funding follows the restart of Ferrexpo's Ukrainian facilities, confirmed Monday, initially with just a single pellet line in operation. Trading in the company's shares resumed at the same time after a suspension, and the limited scale of the restart suggests management is proceeding cautiously even with fresh money in hand.
The larger capital increase remains unfinished. On September 4, Ferrexpo flagged progress on the planned issuance: 448,848,484 new ordinary shares at 16.5 pence each, expected to generate roughly $100 million in gross proceeds. Fevamotinico has committed to a conditional subscription of $40 million, while investor Andriy Verevskyi has made a conditional cornerstone commitment of $50 million.
Both pledges carry conditions. The transaction still requires shareholder approval at a general meeting scheduled for September 21, 2026, after which the new shares can be admitted to trading — a step Ferrexpo has pencilled in for September 22, 2026.
Should investors sell immediately? Or is it worth buying Ferrexpo?
A Widening Annual Loss
The financing push is set against a sharply larger annual deficit. For the fiscal year ended December 31, 2025, Ferrexpo reported a loss of $224 million, compared with a $50 million shortfall the prior year.
The 2025 annual report is to be published on the company's website, with audited accounts due to the Registrar of Companies by an extended deadline of September 30, 2026. Against that backdrop, management has framed the equity raise as an urgently needed recapitalization, one meant to buy the company additional time to navigate what it describes as a demanding environment. Management had originally targeted completion of the measure for late September 2026 — a timeline that now aligns with the shareholder meeting and the anticipated listing date.
Routine AGM Business Deferred to October
Separately, Ferrexpo has issued the notice for an extraordinary general meeting on October 9, at which it will catch up on the core resolutions normally handled at the annual general meeting in June. On the agenda: presentation of the 2025 business report, a vote on the directors' remuneration report, and the reappointment of MHA Audit Services LLP as auditor.
Those items, originally slated for June 29, were pushed back because finalization of the 2025 accounts ran late. The delay stemmed from the need to first secure a viable financing solution so the accounts could be prepared on a going-concern basis. Only once that funding was assured could the audit process advance far enough to set an October date for the report.
Ukrainian Steel Output in Freefall
The administrative catch-up at Ferrexpo is unfolding against a dramatic collapse in Ukraine's steel and iron industry. August 2026 data lays bare the severity: total Ukrainian steel production fell to 277,000 tonnes for the month, down 57.3 percent year-on-year and nearly 40 percent below July's level.
Upstream stages show the same pattern. Ukrainian pig iron output plunged 65.6 percent year-on-year in August to 257,100 tonnes. For January through August 2026, crude steel production is down 12.5 percent versus the same period a year earlier, totaling 4.3 million tonnes. Those figures underscore the operational obstacles facing companies like Ferrexpo as they keep production sites and logistics chains running amid the ongoing conflict in Ukraine.
For investors, the takeaway is that neither the $15 million credit line nor the larger equity raise is contractually locked in at this stage. The shareholder decision on September 21 and the subsequent admission of the new shares to trading will determine whether Ferrexpo achieves the financial stabilization it is targeting.
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