Sibanye-Stillwater has announced that it has executed a €500 million green loan financing facility (Green loan) for its Keliber lithium project in Finland, through its subsidiary Keliber Technology Oy. The Green loan secures the final capital expenditure funding required for the construction and development of its lithium mining, processing and refining facilities in Kaustinen, Kronoby and Kokkola, Finland respectively. The Green loan not only completes the full financing requirement for the Keliber lithium project, but also represents a significant injection of capital for Sibanye-Stillwater, improving Group financial flexibility and liquidity and ensuring that available Group cash and debt facilities are ring-fenced for operational and corporate requirements.
The Green loan is a distinctive credit facility, comprising a bank financed €250 million Export Credit Agency (ECA) guaranteed tranche, a €150 million tranche provided by the European Investment Bank (EIB) and a €100 million syndicated commercial bank tranche.
The Green loan facilities are governed by a “Green Financing Framework” (available for download at www.sibanyestillwater.com/green-financing-framework) and its green credentials have been confirmed by an independent second party, achieving a “Medium Green” classification from S&P Global ratings. The Green Financing Framework has been prepared in alignment with the Loan Market Association’s 2023 Green Loan Principles and contains the following sections: (1) Use of Proceeds; (2) Process for Evaluation and Selection; (3) Management of Proceeds; and (4) Reporting. This Green loan underscores Sibanye-Stillwater’s commitment to the green energy transition in partnership with supportive lenders and confirms the transparency, robust disclosure, and integrity of the Keliber lithium project’s green financing efforts.
The proceeds of the Green loan will be used to complete the development of the Keliber Lithium project, with a total capital expenditure of ~€656 million (2023 terms) or ~€667 million (adjusted for inflation), partially funded by a previously raised equity financing component of ~€250 million.
Finnvera, the Finnish state owned ECA, has provided a guarantee covering 80% of the €250 million ECA tranche. This funding is aligned with Finnvera’s strategic aim of strengthening the operating potential and competitiveness of Finnish enterprises by providing loans, domestic guarantees, export credit guarantees, and other services associated with the financing of exports.
The EIB financing of €150 million is consistent with EIB’s intent to accelerate the green transition in Europe, boost technological innovation, and support regional development. This marks the first EIB financing support for mining critical raw materials in the European Union (EU) and is an important step towards the EU’s strategic autonomy.
Bank of America and Natixis Corporate and Investment Banking acted as Joint Coordinators, Bookrunners and mandated lead arrangers for the entire financing package. Bank of America acted as the Green loan coordinator and documentation agent whilst Natixis acted as the facility agent, Finnvera and EIB coordinator.