Stegra has closed a $1.6 billion funding round

The Swedish company Stegra has announced the completion of a €1.4 billion ($1.6 billion) funding round.

According to the statement, the round was led by a consortium headed by Wallenberg Investments and received strong support from both existing investors and original lenders.

Stegra announced in April this year that it had reached an agreement in principle on the new funding round, subject to certain approvals. The round has now been finalised.

The consortium led by Wallenberg Investments comprises existing investors (IMAS and Temasek), as well as new investors – Bolero and SEB-Stiftelsen. In addition, a significant group of Stegra’s existing shareholders is continuing to invest in the company.

Furthermore, a group of second-lien creditors, led by AIP Management, has decided to support the project as direct investors in the share capital.

“This large-scale ‘green’ project is an important step in enhancing Sweden’s competitiveness and security of supply within the EU,” said Håkan Busche, Head of Special Investments at Wallenberg Investments and future member of Stegra’s board.

The financing has also received 100 per cent approval from the start-up’s group of lenders. All banks participating in Stegra’s financing package continue to support the project. The company will have access to unused credit facilities opened as of 2024.

Stegra is currently ramping up construction work in Bodensee. The project schedule is being reviewed during this period.

It is worth noting that Stegra, founded six years ago, is implementing one of Europe’s largest projects to decarbonise the steel industry. The company plans to produce steel using hydrogen and renewable energy, reducing CO₂ emissions compared to traditional blast furnace production.

The company is building a large-scale plant in Boden to produce environmentally friendly steel. It will consist of an electrolyser, a direct reduction unit, two electric arc furnaces, as well as cold rolling and finishing shops.