Stegra has agreed in principle on €1.4 billion in new financing in order to complete the construction of its green steel plant in Boden, Sweden.
This financing round is led by Wallenberg Investments, which has formed a consortium of investors that will take a leading position in Stegra. Alongside Wallenberg, the consortium consists of Temasek and IMAS.
Leif Johansson, advisor to the consortium led by Wallenberg, said: “We are convinced of the competitiveness of Stegra and the commercial attractiveness of green steel in addition to the climate benefits, while remaining clear-eyed about the challenges that lie ahead.
“We also consider the project to be of great importance to Sweden’s position as an industrial nation.”
Funding is also further supported by Stegra’s existing shareholders, including Altor, who will be the second-largest owner post-closing, as well as Hy24 and Just Climate.
Henrik Henriksson, CEO of Stegra, added: “This financing reflects the strong conviction in Stegra’s business model among new and existing investors, as well as lenders.
“It has been achieved in a very challenging macro-environment and reflects significant efforts by everyone involved, including, of course, investors and banks, but also the team in Stegra and the extended family of suppliers, customers and other close partners in Boden.”
The added financing of €1.4 billion will be used to complete the construction of the plant in Boden. This includes previously communicated scope expansions, such as the insourcing of selected infrastructure components, coverage of increased project costs, and the establishment of a prudent financial buffer.
The financing has been agreed in principle and is subject to credit approvals from the lenders and finalisation of documentation. Additionally, customary conditions precedent, including regulatory approval, will be required.
