New Delhi, 24 June (Argus) — Sweden’s Stegra has closed a €1.4bn ($1.6bn) financing round to fund construction of its low-carbon steel plant in Boden, Sweden, it said today.
This completes a funding package that was announced in principle in April.
The funding was led by a consortium headed by Wallenberg Investments and included Singapore’s Temasek, Sweden’s Bolero and SEB-Stiftelsen, as well as IMAS.
Existing shareholders private equity firm Altor, hydrogen-focused investment manager Hy24 and climate investment platform Just Climate also took part. A group of its second-lien lenders, led by AIP Management, joined the round as equity investors, Stegra said.
The company has also received approval from its lenders to maintain access to debt facilities put in place under its 2024 financing package.
The additional capital strengthens Stegra’s financial position as it continues construction of its steel plant in Boden, Sweden, it said.
But the project timeline is “under review”, Stegra said. The firm previously said that it was targeting to start operations in 2027.
The plant is set to produce 2.5mn t/yr of low-carbon steel in its first phase, potentially doubling that output later on. The first phase will use over 700MW of electrolysis capacity, provided by German technology firm Thyssenkrupp Nucera.
By Anmol Choubey
