Stegra provides debt financing in the amount of € 1.5 billion to complete the construction of a green steel plant

According to a Bloomberg report, Swedish green steel producer Stegra and its creditors have reached an agreement to raise additional $1.5 billion in debt financing for the company's low-carbon steel project in Boden. The financing is expected to contribute to the further construction and development of the plant.

The additional debt financing strengthens the company's financial position as it promotes one of Europe's most ambitious low-carbon steel projects.

Stegra is developing integrated green hydrogen and steel production aimed at producing steel with significantly lower CO2 emissions compared to traditional blast furnace production.

The project is based on:

• renewable electricity,
• green hydrogen,
• direct iron reduction (DRI) technology.

All lenders participating in the Stegra financing package worth more than €4 billion have agreed to expand the company's access to existing credit lines. Some of these funds were previously unavailable because certain project milestones and financing conditions had not yet been met.

The agreement also includes revised repayment terms that allow the company to temporarily cover part of its interest payments through additional debt financing under the in-kind payment structure.

Along with the loan agreement, in April Stegra also received about €1.4 billion in new financing from investors, including