BREAKING: Stegra secures €1.4B led by Wallenberg family for green steel plant

Wallenberg Investments, the vehicle of Sweden's most powerful industrial dynasty, has formed an investor consortium that will take a leading ownership position in Stegra through a €1.4bn injection.

The consortium includes Temasek and IMAS, while existing shareholder Altor becomes the second-largest owner following completion. Asset manager Hy24 and Al Gore's investment fund Just Climate also participated. The company's senior and junior lenders are supporting the financing, subject to credit approvals.

The funds will go toward completing the plant in Boden - including taking certain infrastructure components in-house, managing increased project costs, and building a financial buffer.

"The financing reflects the strong confidence in Stegra's business model from both new and existing investors, as well as from our lenders," said CEO Henrik Henriksson. "Reaching this agreement in a very challenging macroeconomic environment is the result of significant efforts from everyone involved."

Leif Johansson, adviser to the Wallenberg Investments consortium, said: "We are convinced of Stegra's competitiveness and the commercial viability of green steel, beyond its climate benefits, while being fully aware of the challenges that remain."

Marcus Wallenberg, chairman of Wallenberg Investments, described Stegra as "an industrial project of clear significance for Sweden."

He added: "Based on our thorough evaluation, we see a commercially viable path forward. At the same time, this is a large and complex undertaking, and success will lie in execution."

After a period of slower activity during the fundraising process, Stegra will now accelerate construction. The project timeline is under review.

Agreements are expected to be signed at the end of April, with the financing round set to close in June 2026.

Upon completion, Johansson is proposed as the new board chairman, succeeding Shaun Kingsbury who led board work during the financing process. Håkan Buskhe from Wallenberg Investments and Paal Weberg, managing partner at Altor, are proposed as new board members. Johansson and Buskhe join as observers with immediate effect.

Stegra's communications director Karin Hallstan told Impact Loop it was "a very good day," directing further questions to a press conference later today.