Sibanye-Stillwater has successfully secured a €500 million green loan financing facility through its subsidiary, Keliber Technology Oy, to fund the Keliber lithium project in Finland.
This green loan provides the final capital expenditure needed for the construction and development of lithium mining, processing, and refining facilities in Kaustinen, Kronoby, and Kokkola, respectively.
The financing package strengthens Sibanye-Stillwater’s financial flexibility and liquidity, ensuring that group cash and debt facilities remain reserved for operational and corporate needs.
Sibanye-Stillwater CEO Neal Froneman highlighted the significance of this funding, stating that it offers cost-effective, long-term support for the Keliber project, while also underscoring the project’s environmental, social, and governance (ESG) credentials. He emphasized the project’s strategic importance in advancing Europe’s clean energy transition.
The green loan comprises three tranches: a €250 million Export Credit Agency (ECA)-guaranteed tranche financed by banks, a €150 million tranche from the European Investment Bank (EIB), and a €100 million syndicated commercial bank tranche.
The facility adheres to a green financing framework aligned with the Loan Market Association’s 2023 green loan principles, earning a ‘medium green’ classification from S&P Global ratings.
The total capital expenditure for the Keliber lithium project is estimated at €667 million when adjusted for inflation.
The Finnish State-owned ECA, Finnvera, has guaranteed 80% of the €250 million ECA tranche, while the EIB’s €150 million tranche aligns with its mission to accelerate Europe’s green transition and technological innovation.
Bank of America (BoA) and Natixis Corporate and Investment Banking acted as joint coordinators, bookrunners, and lead arrangers for the financing package, with BoA serving as the green loan coordinator.
The syndicated loan tranche was oversubscribed, with participation from seven international commercial banks, alongside the EIB loan.
The loan repayment profile will be tied to projected cash flows, with ultimate maturities of seven to eight years at a variable interest rate linked to the Euro Interbank Offered Rate (EURIBOR).
Finnish Minerals Group CEO Matti Hietanen noted that the Keliber lithium project is a critical component of Finland’s battery value chain and the first integrated lithium project in Europe.
The secured financing will enable the completion of the construction phase and the commencement of battery-grade lithium hydroxide production.
