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Stegra announces EUR 1.4 billion new financing round for green steel plant in Sweden

Stegra has announced that it has reached a preliminary agreement with new and existing investors to secure a total of EUR 1.4 billion in fresh equity financing for its large-scale green steel plant under construction in Boden, Sweden.

Stegra announces EUR 1.4 billion new financing round for green steel plant in Sweden

Financing round led by Wallenberg Investments, with Temasek and IMAS also joining the investor consortium. The structure creates a leading investor group in Stegra, while existing shareholders Altor, as well as Hy24 and Just Climate, continue to provide strong support to the financing process. In addition, the transaction is backed by senior and junior lenders, subject to credit approvals.

In its statement, the company said the financing provides a fully funded path to complete construction and commissioning of the Boden plant. The package also covers previously announced scope expansions, in-house sourcing of selected infrastructure components, increased project costs, and the establishment of a financial buffer.

Stegra CEO Henrik Henriksson said the financing reflects strong confidence in the company’s business model, noting that it was achieved in a very challenging macroeconomic environment through the joint effort of investors, banks, the Stegra team, as well as suppliers, customers, and other stakeholders in Boden.

Henriksson also highlighted that the investors bring significant industrial expertise, strengthening both Stegra’s position and the importance of the Swedish project, while emphasising the commercial attractiveness of green steel and its contribution to Sweden’s position as an industrial nation.

Wallenberg Investments representative Leif Johansson stated that green steel stands out not only for its environmental benefits but also for its competitiveness and commercial potential, underlining the strategic importance of the project for Swedish industry.

The statement added that following completion of the financing process, Stegra will accelerate construction activities, and the project timeline will be revised.

The final stage of the financing round remains subject to customary conditions, including lender approvals, completion of documentation, and regulatory clearances. Signing of main agreements is expected by the end of April, with financial close anticipated in June 2026.

As part of the process, changes to Stegra’s Board of Directors are also planned. Upon completion of the financing, Shaun Kingsbury—who has served as interim Chairman—will be replaced by Leif Johansson as Chairman of the Board, while Kingsbury is expected to remain a board member.

In addition, Wallenberg Investments senior industrialist Håkan Buskhe and Altor Managing Partner Paal Weberg are expected to join the Board. Further changes to the Board will be announced at an extraordinary general meeting. Leif Johansson and Håkan Buskhe have already started serving as observers on the Board as of today.

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