Swedish green steel producer Stegra has reached a major milestone by agreeing in principle to a €1.4 billion financing package, ensuring its flagship low-carbon steel plant in Boden can be completed.
Stegra secures full financing for Boden Green Steel project
Stegra has agreed in principle to secure new €1.4 billion in funding from a combination of new and existing investors, which will enable the company to complete construction and commissioning of its large-scale green steel production facility in Boden, Sweden. The funding round is led by Wallenberg Investments, which formed a consortium with Temasek and IMAS. With this transaction, the consortium will take a leading position in Stegra.
Strong support from existing shareholders and lenders
In addition to the new consortium of investors, the financing is strongly supported by existing Stegra shareholders. Altor is expected to become the second largest owner once the deal closes, while Hy24 and Just Climate also continue to support the project. The financing is also supported by senior and junior lenders, subject to loan approval, which strengthens Stegra's financial position and provides a fully funded path to project completion.
Stegra CEO Henrik Henriksson said the financing reflects strong confidence in the company's business model despite the challenging macroeconomic environment, and
