Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers H > Headlines for H2 Green Steel > News item |
H2 Green Steel gets 3.5 billion debt financing for green steel plant
By Marisa Wong
Los Angeles, Oct. 24 H2 Green Steel has received 3.5 billion of debt financing support from leading European financial institutions for the company and its hydrogen-powered green steel plant in northern Sweden, according to a press release.
The debt financing support consists of the following:
H2 Green Steel has executed conditional commitment letters for 3.3 billion of senior debt with AB Svensk Exportkredit (SEK) and BNP Paribas, ING, UniCredit, Societe Generale and KfW IPEX-Bank;
European Investment Bank has received board approval for 750 million of senior debt funding for the H2 Green Steel project;
Export credit agencies, including Euler Hermes, have issued letters of intent to provide export credit-linked guarantees of 1.5 billion of H2 Green Steels intended senior debt;
Swedish National Debt Office has issued a letter of intent to provide a green credit guarantee of 1 billion of H2 Green Steels senior debt; and
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 roughly 500 million junior debt facility.
The commitment letters and approvals remain subject to, among other things, completion of final due diligence and documentation, with a further round of syndication anticipated given the substantive interest in the financing from a wide range of other commercial banks and investors.
Societe Generale is acting as lead financial adviser on the senior and junior debt facilities. KfW IPEX-Bank is acting as joint financial adviser on the senior debt facility. BNP Paribas, ING and UniCredit are acting as pathfinders for the financing as respectively market, documentation and technical banks.
In addition to the debt financing, H2 Green Steel will use equity to finance the construction of the green steel plant.
The green steel producer is based in Stockholm.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.