Sweden-based green steel producer Stegra has reached a major milestone by agreeing in principle on a €1.4 billion financing package, ensuring that its flagship low-carbon steel plant in Boden can be completed.
Stegra secures full funding for Boden green steel project
Stegra has agreed in principle to secure €1.4 billion in new financing from a combination of new and existing investors, which will allow the company to complete the construction and commissioning of its large-scale green steel facility in Boden, Sweden. The financing round is led by Wallenberg Investments, which has formed a consortium together with Temasek and IMAS. Through this transaction, the consortium will take a leading ownership position in Stegra.
Strong backing from existing shareholders and lenders
In addition to the new investor consortium, the financing is strongly supported by Stegra’s existing shareholders. Altor is expected to become the second largest owner following the closing of the transaction, while Hy24 and Just Climate are also continuing to back the project. The funding is further supported by senior and junior lenders, subject to credit approvals, which reinforces Stegra’s financial position and ensures a fully funded path for completing the project.
Stegra CEO Henrik Henriksson stated that the financing reflects strong confidence in the company’s business model, despite the challenging macroeconomic environment, and emphasized the contribution of investors, banks, and partners involved in the project.
How the €1.4 billion financing will be used
The additional €1.4 billion financing will be used to complete the construction of the Boden plant, including previously announced scope expansions such as the insourcing of selected infrastructure components. The funds will also cover increased project costs and provide a financial buffer to strengthen the company’s overall financial resilience. As a result of the financing round, Stegra will achieve a higher equity ratio, improving its financial stability.
Timeline: Approvals and closing expected by mid-2026
The financing agreement has been reached in principle and remains subject to credit approvals from lenders, finalization of documentation, and customary regulatory approvals. The signing of principal agreements is expected to take place at the end of April 2026, while the closing of the financing round is anticipated in June 2026.