Key facts
- Stegra closed a €1.4bn financing round for its low-carbon steel plant in Boden, Sweden.
- The funding was led by Wallenberg Investments, Temasek, Bolero, SEB-Stiftelsen, and IMAS.
- Existing shareholders and second-lien lenders also participated in the round.
- The project timeline is currently under review.
- The plant's first phase will produce 2.5 million tonnes per year of low-carbon steel.
Sweden's Stegra has successfully closed a €1.4 billion financing round to support the construction of its low-carbon steel plant located in Boden, Sweden. This significant funding package, initially announced in April, was spearheaded by a consortium led by Wallenberg Investments, with participation from notable entities including Singapore's Temasek, Sweden's Bolero and SEB-Stiftelsen, and IMAS.
The investment round also saw contributions from Stegra's existing shareholders, such as private equity firm Altor, hydrogen-focused investment manager Hy24, and climate investment platform Just Climate. Furthermore, a group of second-lien lenders, guided by AIP Management, converted their positions into equity investors, bolstering Stegra's financial standing.
Stegra has also secured approval from its lenders to retain access to debt facilities established in 2024, reinforcing its financial stability. The company stated that this capital infusion strengthens its position as it progresses with the construction of the Boden plant.
However, Stegra indicated that the project's timeline is currently under review, a shift from its previous target of commencing operations in 2027. The facility is designed to produce 2.5 million tonnes per year of low-carbon steel in its initial phase, with potential for output to double later. The first phase will require over 700MW of electrolysis capacity, to be supplied by German technology firm Thyssenkrupp Nucera.