Fortescue to pay down debt by $925m

Fortescue Metals is pushing ahead with paying down its debt pile, with a $US700 million ($A925 million) repayment of its 2019 term loan.

Iron ore exporter Fortescue Metals says it will repay $A925 million of its debt. (AAP)

Iron ore exporter Fortescue Metals says it will repay $US700 million ($A925 million) of its debt, generating annual interest savings of about $US26 million.

Chief financial officer Stephen Pearce said the $US700 million repayment adds to the $US2.9 billion the company repaid in fiscal 2016 and further reduces the company's cost base.

"We will continue to apply our free cash flow to repay debt, lowering our gearing and strengthening our balance sheet," Mr Pearce said in a statement on Tuesday.