Stegra finally has the financing in place to continue building the world's largest green steel plant in the north of Sweden.
The €1.4bn round is the largest secured by any venture-backed climate tech company globally so far this year.
As Impact Loop previously reported, the parties reached an agreement in principle in April, conditional on regulatory approvals. The deal is now complete.
The Wallenberg Investments consortium – the investment arm of Sweden's prominent Wallenberg family – leads the round alongside existing investors IMAS Foundation, the investment arm of the IKEA group, and Temasek, Singapore's state investment firm. New investors Bolero and the SEB Foundation also join.
A large group of existing shareholders is continuing to invest. Altor, the Nordic private equity firm, becomes the second-largest shareholder. Hy24, the Paris-based clean hydrogen fund, and Just Climate, the investment firm set up by former US vice president Al Gore, also joined in.
"We are grateful for the support for the work we are doing to bring near-zero emissions steel to market, from both new and existing investors and from lenders. It is a strong sign of confidence in our business case and the project," said Henrik Henriksson, CEO of Stegra.
New ownership structure and new chair
With the closing of the round, Stegra has made changes to its board. A new holding company, Stegra Holding AB, owned by investors in the new round, now controls more than 90% of the shares and votes in Stegra. The Wallenberg Investments consortium thereby holds an indirect majority in the company.
Leif Johansson becomes the new board chair, representing the consortium, succeeding Shaun Kingsbury, who led the board in recent quarters and remains a member. Henrik Henriksson continues as CEO. Founder Harald Mix is not on the board.
"I am very pleased to now have a very strong board in place – one that combines deep industrial expertise with broad international experience. I want to thank Shaun Kingsbury, my predecessor as chair, for his leadership in securing the financing package," said Johansson.
The new Stegra board in full: Leif Johansson, chair (Wallenberg consortium); Håkan Buskhe (Wallenberg consortium); Astrid Skarheim Onsum (Wallenberg consortium); Erika Söderberg Johnsson (Wallenberg consortium); Paal Weberg (Altor); Karin Rådström (Altor); Shaun Kingsbury (Just Climate); Pierre-Etienne Franc (Hy24).
Timeline under review
The former parent company – previously Stegra AB, where investors who came in before the round hold their shares – is being renamed Green Nexus Investment Holding AB, as Impact Loop reported earlier. As the new capital has diluted the previous ownership, that entity is now a minority shareholder in Stegra.
The name Stegra AB is also being transferred in June to another company in the group – the one responsible for operating the hydrogen, iron, and steel facilities.
Stegra is now ramping up construction activity in Boden. During that period, the project's timeline is under review, the company says.