H2 Green Steel has received support from multiple European financial institutions for its EUR 3.5bn debt financing and will finance the construction of a green steel plant through a combination of equity and debt, according to a news release.
Conditional commitment letters for EUR 3.3bn in senior debt have been secured from AB Svensk Exportkredit and the commercial banks BNP Paribas, ING, UniCredit, Societe Generale and KfW IPEX-Bank.
Societe Generale is acting as lead financial advisor on senior and junior debt facilities. KfW IPEX-Bank is acting as joint financial advisor on a senior debt facility. BNP Paribas, ING and UniCredit are acting market, documentation and technical banks, respectively.
The money supports the company’s hydrogen-powered green steel plant in Northern Sweden through debt and credit guarantees.
The European Investment Bank has received board approval for EUR 750m of senior debt funding for the project as well, while eading export credit agencies, including Euler Hermes, have issued letters of intent to provide export credit-linked guarantees of EUR 1.5bn of H2 Green Steel’s intended senior debt.
The Swedish National Debt Office has issued a letter of intent to provide a green credit guarantee of EUR 1bn of H2 Green Steel’s senior debt.
H2 Green Steel has executed a conditional commitment letter with a leading infrastructure fund comprising large Nordic investors in connection with their lead participation in a circa EUR 500m junior debt facility.
This milestone has been enabled by a due diligence process that was initiated in 4Q21.
