Sweden’s green steel producer Stegra has completed its previously announced EUR 1.4 bln (USD 1.58 bln) financing round, securing support from a consortium led by Wallenberg Investments alongside existing shareholders and lenders.
The financing strengthens Stegra’s capital structure and provides continued access to undrawn debt facilities established under the company’s 2024 financing package. The company said the funds will support the completion and commissioning of its hydrogen-based steel plant in Boden, Sweden, which is currently under construction.
The Wallenberg Investments-led consortium includes existing investors IMAS and Temasek as well as new investors Bolero and SEB-Stiftelsen. Existing shareholders including Altor, Hy24, Just Climate, AMF, AP2, Scania, Schaeffler, Kobe Steel and Swedbank Robur also participated in the financing round. In addition, a group of second-lien lenders led by AIP Management joined the project as equity investors.
Following completion of the transaction, a newly established holding company owned by the investors will control more than 90pct of Stegra’s shares and voting rights. As part of the restructuring, former Volvo Group chairman Leif Johansson has been appointed chairman of the board, replacing Shaun Kingsbury, who remains a board member. Stegra co-founder Harald Mix has stepped down from the board.
Stegra said construction activities at its Boden site are continuing to ramp up, although the project schedule remains under review.
Stegra is developing one of Europe’s flagship low-carbon steel projects. The facility will include a direct reduction plant, hydrogen electrolyzers, two electric arc furnaces, and downstream rolling and finishing facilities. Initial production capacity is planned at around 2.5 mln tons per year, with potential expansion to 5 mln tons annually in a later phase.
1 USD / 0.88 EUR