The latest $750 million investment by Fortescue's Andrew Forrest might surprise you

Fortescue chair Andrew Forrest and his wife Nicola have made a personal investment in the rebuilding of Ukraine.

Key points
  • Fortescue founder Andrew Forrest and his wife Nicola have made a personal investment in the rebuilding of Ukraine
  • The pair are well-known humanitarians and philanthropists 
  • Their $750 million investment will go into a multi-billion-dollar fund to rebuild the war-battered country using green digital technology

The Fortescue Metals Group Limited (ASX: FMG) share price closed down 1.76% today to $19.50.

There was no official news from the company today. So, it's probably fair to say this was a predictable share price pullback after what was nothing short of a stellar run for Fortescue over the first two weeks of November.

The Fortescue share price leapt 33% between 1 November and 14 November.

This was largely due to a variety of good news out of China, including a relaxation of COVID restrictions which means economic activity will increase.

Separate to Fortescue's incredible share price rise is news today that founder and chair, Dr Andrew Forrest AO, and his wife, Nicola Forrest, have personally invested almost $750 million into the rebuilding of Ukraine when the war is over.

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today

Image source: Getty Images

Fortescue chair makes personal investment in Ukraine rebuild

According to reporting in The Australian, the Forrests have invested US$500 million (A$746.3 million) through their private investment company, Tattarang, as seed money for a multi-billion dollar fund to rebuild the war-battered country using green digital technology.

The Forrests are well-known humanitarians and philanthropists. Forrest was appointed an Officer of the Order of Australia in 2017 partly due to his philanthropy and charity work.

In 2013, the Forrests were the first Australian billionaires to pledge the majority of their lifetime wealth to charity through the Warren Buffett-founded The Giving Pledge.

Ukraine president Volodymyr Zelensky spoke of the Ukraine Green Growth Initiative and the Forrests' involvement at the New Economy Forum in Singapore.

Zelensky said:

Andrew and I have agreed we will not replace communist-era rubbish Russian infrastructure, instead we will leapfrog to the latest technology. We will take advantage of the fact that what the Russians have destroyed can readily be replaced with the latest, most modern green and digital infrastructure.

Dr Forrest told The Australian he expected the fund to grow to at least US$100 billion. He said rebuilding work would commence after the war with Russia ends.

Forrest said:

… this will not lock in for years after the cessation of hostilities, as happened in World War Two, this will lock in on the first day of the cessation of hostilities and seek immediately to rebuild the primary infrastructure which the Russians are hell bent on destroying.

What's been happening at Fortescue?

Fortescue shareholders have been cheering of late due to the ASX mining share's astounding rise.

As my Fool colleague Sebastian remarked yesterday, it's not often that you see a $60 billion stock move that much, that fast.

Forrest is easily one of the most vocal and proactive Australian business leaders championing a green energy future.

He continues to expand Fortescue Metals' subsidiary, Fortescue Future Industries (FFI). This division of the Fortescue business plans to produce green hydrogen and ammonia.

The Fortescue share price surged 9% on Monday on the back of news that Fortescue will collaborate with GPR, an Indonesian steelmaker, to explore making green steel.

Forrest also hinted that an even bigger agreement for European green steel might be on the way.

The Fortescue founder also wants to decarbonise the mining company's Pilbara operations at an estimated cost of $9.2 billion.

This has some brokers worried, with Goldman Sachs suggesting it may impact Fortescue's generous dividend payout ratio.

Motley Fool contributor Bronwyn Allen has positions in Fortescue Metals Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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