Sibanye-Stillwater 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 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.

The syndicated loan tranche was oversubscribed, with 7 international commercial banks participating, which is in addition to the loan from EIB.