H2 Green Steel Secures Historic €6.5 Billion Financing for Green Steel Plant

H2 Green Steel, a leading company in green steel manufacturing, has announced a significant financial milestone, securing nearly €6.5 billion for the construction of the world’s first large-scale green steel plant in Northern Sweden. This achievement marks a major leap in the company’s mission to decarbonize the steel industry.

The funding package includes €4.2 billion in debt financing and an additional €300 million in equity, raising the total equity funding to €2.1 billion. H2 Green Steel has also received a substantial grant of €250 million from the EU Innovation Fund.

The project has attracted a diverse group of over 20 international lenders, including the European Investment Bank and commercial banks, led by BNP Paribas, ING, KfW IPEX-Bank, Societe Generale, and UniCredit. The junior debt consortium is spearheaded by AIP Management.

The debt financing is partially covered by green credit guarantees from Riksgälden (Swedish National Debt Office) and Euler Hermes. These guarantees are provided in accordance with market pricing and cover a significant portion of the loan amounts.

The company’s equity base is bolstered with new shareholders like Microsoft Climate Innovation Fund, Mubea, and Siemens Financial Services, joining existing investors like IMAS Foundation and Just Climate in increasing their investments.

The financing structure showcases innovative solutions and groundbreaking approaches in financing one of the most significant decarbonization ventures globally. It reflects the recognition of the quality and potential impact of H2 Green Steel’s project.

Key financial partners and advisors, including SEK, Euler Hermes, the European Investment Bank, Societe Generale, and AIP, commend the project for its groundbreaking approach and potential in decarbonizing hard-to-abate industries.