Stegra announced it has agreed in principle on a €1.4 billion financing round led by Wallenberg Investments, alongside a consortium of global investors, to complete construction of its large-scale green steel plant in Boden, Sweden.
The consortium includes Temasek and IMAS, with additional backing from existing shareholders such as Altor, Hy24, and Just Climate, as well as support from lenders subject to credit approvals.
The financing provides Stegra with a fully funded path to complete construction and commissioning of its green steel facility, which is expected to play a key role in advancing low-carbon industrial production. The capital will be used to finalize plant construction, cover increased project costs, insource certain infrastructure components, and establish a financial buffer to strengthen the company’s balance sheet.
Following the transaction, Wallenberg Investments and its consortium will take a leading ownership position in Stegra, with Altor expected to become the second-largest shareholder. The financing is expected to improve Stegra’s equity ratio, resulting in a more resilient financial structure.
After a period of slower activity during fundraising, the company plans to ramp up construction efforts, with the overall project timeline currently under review.
The financing remains subject to credit approvals, regulatory clearances, and final documentation. Signing of principal agreements is anticipated by the end of April 2026, with closing expected in June 2026.
As part of the governance transition tied to the financing, investors intend to nominate Leif Johansson as Chair of the Board, succeeding Shaun Kingsbury, who will remain on the board. Additional planned board appointments include Håkan Buskhe of Wallenberg Investments and Paal Weberg of Altor.
Stegra is developing a large-scale green steel production platform aimed at reducing carbon emissions in heavy industry, supporting broader decarbonization efforts across global supply chains.
KEY QUOTES:
“This financing reflects the strong conviction in Stegra’s business model among new and existing investors, as well as lenders. It has been achieved in a very challenging macro-environment and reflects significant efforts by everyone involved, including of course investors and banks, but also the team in Stegra and the extended family of suppliers, customers and other close partners in Boden.”
“The investors will bring additional significant industrial expertise, and their investment reinforces Stegra’s position and the project’s Swedish anchoring. They represent values aligned with both Stegra’s purpose and team.”
Henrik Henriksson, Chief Executive Officer, Stegra
“We are convinced of the competitiveness of Stegra and the commercial attractiveness of green steel in addition to the climate benefits, while remaining clear-eyed about the challenges that lie ahead. We also consider the project to be of great importance to Sweden’s position as an industrial nation.”
Leif Johansson, Adviser To The Consortium Led By Wallenberg Investments
