Stegra has completed a €1.4 billion equity financing round, securing fresh backing from a consortium led by Wallenberg Investments as the company continues construction of its flagship low-carbon steel plant in Boden, northern Sweden.
The financing follows an agreement announced in principle in April and marks a significant milestone for one of Europe’s most closely watched industrial decarbonization projects. The Wallenberg Investments-led group includes existing shareholders IMAS and Temasek alongside new investors Bolero and SEB-Stiftelsen. A broad group of existing investors also participated, including Altor, Hy24, Just Climate, AMF, AP2, Scania, Schaeffler, Swedbank Robur and others.
In addition, a group of Stegra’s second-lien lenders led by AIP Management elected to convert their support into direct equity investments, further reinforcing confidence in the project.
Chief Executive Henrik Henriksson said the financing demonstrates continued support from both investors and lenders for the company’s strategy of producing near-zero-emissions steel. He added that the transaction leaves Stegra with a stronger balance sheet and a higher equity ratio.
The financing package also received unanimous approval from Stegra’s lender group. All participating banks remain committed to the debt facilities established under the company’s 2024 financing package, giving the company access to previously undrawn funding as construction progresses.
Wallenberg Investments’ Håkan Buskhe, who is set to join Stegra’s board, said the investor group will work closely with management to complete and commission the Boden facility, describing the project as strategically important for Sweden’s industrial competitiveness and Europe’s supply security.
Stegra is currently ramping up construction activities at the Boden site, although the company said the overall project timeline remains under review.
The funding comes as Europe seeks to reduce emissions from steelmaking, one of the most carbon-intensive industrial sectors globally. Stegra’s project is designed to produce steel using green hydrogen and renewable electricity rather than traditional coal-based blast furnaces, aligning with EU efforts to strengthen domestic industrial supply chains while cutting greenhouse-gas emissions.
Beyond private capital, the company has also secured support from the EU Innovation Fund and the Swedish Energy Agency, underscoring the project’s importance to Europe’s broader industrial and climate objectives.