Sweden-based green steel producer Stegra and its lenders have reached an agreement to unlock an additional $1.5 billion in debt funding for the company’s low-carbon steel project in Boden, according to a report by Bloomberg. The financing is expected to support continued construction and development of the plant.
The additional debt funding strengthens the company’s financial position as it advances one of Europe’s most ambitious low-carbon steel projects.
Stegra is developing an integrated green hydrogen and steelmaking operation aimed at producing steel with significantly lower CO2 emissions compared to traditional blast furnace production.
The project relies on:
- renewable electricity,
- green hydrogen,
- direct reduced iron (DRI) technology.
All lenders involved in Stegra’s more than €4 billion financing package agreed to increase the company’s access to existing credit facilities. Some of these funds had previously been unavailable because certain project milestones and financing conditions had not yet been fulfilled.
The agreement also includes revised repayment terms allowing the company to temporarily cover part of its interest payments through additional debt financing under a payment-in-kind structure.
Alongside the creditor agreement, in April, Stegra also secured approximately €1.4 billion in fresh funding from investors, including Wallenberg Investments, as SteelOrbis previously reported.