Finnvera guarantees Keliber's lithium project with a EUR 250 million Finance Guarantee
Finnvera has granted Keliber's lithium project in Kaustinen and Kokkola, Finland, a Finance Guarantee for a EUR 250 million credit with an 80% guarantee coverage.
The total investment amounts to EUR 656 million, of which the credit guaranteed by Finnvera amounts to EUR 250 million. Other financiers are e.g. Natixis Corporate and Investment Banking and Bank of America and the European Investment Bank. The project includes the mines in Kaustinen and the future lithium chemical refinery in Kokkola.
A Finance Guarantee can be granted for a Finnish domestic investment that promotes exports. The Finnish interest in the Keliber project is strong, the procurements are almost entirely of domestic origin and the Finnish company Metso supplies the key technology of the project.
The project promotes the green transition, as lithium is one of the critical raw materials for the green transition. The project's positive impact on the climate is based on the electrification of traffic, i.e. the raw material production of lithium batteries for the needs of electrifying mobility. The production is not considered to cause significant harm to the environment or people. The production is not emission-free, but the emissions are lower than with similar production units using other types of technology.
Signing date of the Finnvera Guarantee Agreement: August 26th 2024
Name of the Guarantee Holder: Natixis
Name of the Coordinators and Mandated Lead Arrangers: Natixis Corporate and Investment Banking and Bank of America
Name of the Original Lenders: Natixis , Bank of America Europe Designated Activity Company (BoFA), ING Bank, a branch of ING-DiBa AG, Intesa Sanpaolo Bank Luxembourg S.A., Danske Bank A/S, Finland Branch, HSBC Continental Europe and Mizuho Bank, Ltd.
Name of the Buyer and Borrower: Keliber Technology Oy, Finland Name of the Guarantors: Sibanye Stillwater Limited (South Africa) Sibanye Gold Proprietary Limited (South Africa), Stillwater Mining Company (United States of America), Kroondal Operations Proprietary Limited (South Africa), Western Platinum Proprietary Limited (South Africa), Sibanye Rustenburg Platinum Mines Proprietary Limited (South Africa), Eastern Platinum Proprietary Limited (South Africa), Sibanye-Stillwater Sandouville Refinery (France) and Keliber Oy (Finland).
Project: Sibanye-Stillwater’s Keliber lithium project aims to develop a sustainable operation to produce battery-grade lithium hydroxide, an essential component in lithium-ion batteries.
Country of Project: Finland.
Total amount of debt financing: EUR 500 million
Credit amount: EUR 250 million.
Credit period: 7 years.
Percentage of cover: 80 % comprehensive cover.
ES-risk classification: A
Contact point: [email protected]
Environmental and social impact information: Keliber lithum project is considered to meet Finnvera's climate criteria as it has climate positive features defined in th OECD CCSU (Climate Change Sectoral Understanding) agreement. The production involves a raw material critical to the green transition, which will be used 100% in the electrification of transportation, and the overall emissions are lower than comparable alternatives. The domestic project is subject to national environmental and social legislation and regulation, including the obligation to comply with the environmental permits granted by the Finnish autorities.
Date of publication: August 29th 2024
