Australian iron ore producer Fortescue Ltd is considering issuing a three-year panda bond to raise approximately 3 billion yuan, according to people familiar with the matter.

The bond would be issued through Fortescue Treasury Management (China) Co., Ltd. and guaranteed by its parent company, Fortescue. The company plans to conduct roadshows for the bond in early September, with a potential issuance as soon as October.

If successfully issued, this would mark Fortescue's first onshore yuan-denominated bond sale in China, data shows. In response to inquiries, a company representative said Fortescue is continuously exploring diversified funding sources and further optimizing its debt capital structure, which may include financing through China's panda bond market, subject to relevant regulatory approvals and favorable market conditions.