Swedish pension company AMF has opted out of Stegra’s new financing consortium, while confirming it has invested around SEK 2bn in the green steel company to date.

The green steel company announced yesterday, 14 April, that it had secured €1.4bn in new financing from a consortium of new and existing investors to complete the construction of its large-scale green steel plant in Boden, in the north of Sweden.

Stegra said that after several slower months during funding activities, it will now “ramp up” its construction activities, with the project timeline under review.

In a statement, AMF said it was “pleased” that a solution to the company’s financing is now in place, and the consortium will give Stegra the “best conditions” to complete the facility.

Although the pension company is not part of the new consortium, it confirmed that, as an existing owner, it has supported Stegra with capital recently to help secure the financing.

AMF head of asset management, Katarina Romberg, said: “AMF has invested a total of approximately SEK 2bn in Stegra, and we are satisfied with the size of our investment.

“Being able to contribute to the company securing a financing solution feels good, not least because it benefits our pension savers and because the company now has the opportunity to focus on starting operations.”

The new round of financing is led by Wallenberg Investments, which has formed a consortium of investors that will take a leading position in Stegra.

Alongside Wallenberg Investments, the consortium consists of Temasek and IMAS.

Funding is further supported by Stegra’s existing shareholders, including Altor, which will be the second largest owner, as well as Hy24 and Just Climate.

Stegra CEO, Henrik Henriksson, said: “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.”

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