Swedish firm H2 Green Steel has secured €4.2bn debt funding to support construction of a green steel plant in northern Sweden, and an additional €300m equity.
The debt funding includes €3.5bn senior debt from a group of 20 lenders including BNP Paribas, the European Investment Bank, ING, KfW IPEX-Bank, Societe Generale, Svensk Exportkredit and UniCredit; and up to €600m junior debt from a consortium led by AIP Management. H2 Green Steel has also raised an additional €300m equity.
This €4.5bn funding is in addition to €1.5bn of equity that H2 Green Steel had raised until September 2023. The project’s steel production operations are set to be powered by green hydrogen.
Henrik Henriksson, chief executive of H2 Green Steel, said: “This massive commitment from our lenders, investors and the Innovation Fund is true recognition of the quality of our company. It’s also a big win for the climate as we hope the model will inspire the financing of other decarbonisation initiatives in hard-to-abate industries.”