Stegra has agreed in principle on €1.4 billion in new financing from a combination of new and existing investors to complete the construction of its large-scale green steel plant in Boden, Sweden.

The financing round is led by Wallenberg Investments, which has formed a consortium of investors that will, through this transaction, take a leading position in Stegra. Alongside Wallenberg Investments, the consortium consists of Temasek and IMAS. Funding is further strongly supported by Stegra’s existing shareholders, including Altor who will be the second largest owner post-closing, as well as Hy24 and Just Climate. It is also supported, subject to credit approvals, by its senior and junior lenders. This provides Stegra with a fully funded path to complete the construction and commissioning of its green steel plant.

“We welcome Stegra’s agreement in principle on long-term financing from the Wallenberg Investments–led consortium, complemented by continued commitments from existing investors. It is a strong confirmation of the attractiveness of the business case that Vargas formulated just over five years ago. We remain a shareholder and are very pleased that leading Swedish industrialists are now stepping in as committed, long-term majority owners. This puts Stegra in an excellent position to continue driving the transformation of the steel industry and to contribute to Swedish and European competitiveness and the green transition,” says Harald Mix, chairman of Vargas.

The added financing of €1.4 billion will be used to complete the construction of the plant in Boden. This includes previously communicated scope expansions, such as the insourcing of selected infrastructure components, coverage of increased project costs, and the establishment of a prudent financial buffer. At the completion of the financing round, a higher equity ratio results in a stronger and more resilient financial position for Stegra.

The financing has been agreed in principle, and is subject to credit approvals from the lenders and finalization of documentation. Additionally customary conditions precedent, including regulatory approval will be required. It is expected that signing of principal agreements will be made in the end of April and that closing of the financing round will occur during June 2026.