Stegra has secured access to €1.5 billion in loans to complete the construction of the plant

The Swedish company Stegra has reached an agreement with its creditors to unlock approximately €1.5 billion in unused credit lines to complete construction of the world’s largest green steel plant. Together with recently secured equity financing, this should ensure the continued implementation of the large-scale project in the city of Boden in northern Sweden. This was reported by Bloomberg.

According to Bloomberg, all creditors who provided the company with over €4 billion in financing have agreed to increase the use of credit lines. Previously, access to part of the funds was blocked due to the failure to meet certain conditions and project milestones.

At the same time, Stegra received an additional €1.4 billion from investors, including the Swedish financial group Wallenberg Investments. Raising funds became critically important for the company after several months of difficult negotiations with banks and shareholders amid a sharp rise in construction costs.

The new agreement also provides for a revision of the partial loan repayment schedule. The company will be able to temporarily make part of its interest payments through additional debt financing under a payment-in-kind arrangement.

Stegra’s main creditors include the European Investment Bank, BNP Paribas, ING, and KfW IPEX-Bank. The company’s senior debt is estimated at €3.5 billion, while a €600 million junior loan package was arranged by investment banks and funds.

The deal still requires regulatory approvals.

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

As a reminder, in March 2026, the Turkish Koç Group became one of Stegra’s new shareholders. At that time, it was reported that in November 2025, the startup announced that an additional 10 billion Swedish kronor was needed to complete construction of the plant in Boden. However, according to sources at the Swedish newspaper Dagens Industri, the amount more than doubled as a result of subsequent negotiations with financiers.

Last fall, the startup received a government grant from Sweden in the amount of 390 million kronor ($40.9 million, approximately €37 million). The support was provided on the condition that the company secure the funds to complete the project by spring 2026.