Allen & Overy advises lenders on H2 Green Steel's EUR4.2 billion financing

The EUR4.2bn financing comprises a EUR3.55bn senior facility provided by over 20 commercial banks, the European Investment Bank and the Nordic Investment Bank, as well as an up to EUR600m second lien facility. The senior facilities benefit from a EUR1.2bn loan guarantee provided by Euler Hermes, the German export credit agency, alongside a loan guarantee of up to EUR1.2bn from Riksgälden, the Swedish national debt office. When fully operational, the plant will deliver steel with up to 95 percent less CO2 emissions compared to steel produced with traditional blast furnace technology. This is made possible by replacing coal in the production process with hydrogen, produced on-site with Europe’s largest electrolyzer, using electricity from renewable sources.

The A&O deal team was led by London partner Lorraine Bayliss and senior associate Christopher O’Hara, supported by Simon Brown (Associate), Joon Ku Kang (Associate) and Ashlie Knight (Associate). Mark Walker and Ben Aartsen led the team advising on due diligence and Project Document related issues. Jocelyn Land and Mark Masson acted as EIB special counsel, while Parya Badie, Raman Kamboh and Charles Humphreys advised on hedging matters. Kate Sumpter and Jack Prettejohn advised on banking regulatory issues relating to the Riksgälden guarantee. Further specialist advice was provided by Matthew Townsend, Tom d’Ardenne, Danae Wheeler, Karen Birch and Gordon Hopkinson. The core team was also assisted by Wolfgang Melzer and Tom Haeseler (A&O Frankfurt); Zeeger de Jongh, Koen de Wit and Cees van Ginneken (A&O Amsterdam); and Gauthier van Thuyne and Jozefien Verbist (A&O Brussels).