Sibanye Secures €500m Green Loan to Advance Keliber Lithium Project

Sibanye-Stillwater, listed on both the JSE and NYSE, has secured a €500 million green loan for its Keliber lithium project in Finland through its subsidiary, Keliber Technology Oy. This loan covers the final capital needed for the construction and development of lithium mining, processing, and refining facilities in Kaustinen, Kronoby, and Kokkola. The green loan completes the funding requirements for the Keliber project, enhancing Sibanye’s financial flexibility and liquidity while ensuring that existing cash and debt facilities are reserved for operational needs.

Sibanye CEO Neal Froneman emphasized that this funding package provides cost-effective, long-term financing for the remaining needs of the Keliber project, improving group liquidity and protecting existing facilities for operational purposes. He noted that the loan highlights the project’s viability and its significance to Europe’s clean energy transition.

The green loan is structured into three tranches: a €250 million Export Credit Agency (ECA) guaranteed tranche, a €150 million tranche from the European Investment Bank (EIB), and a €100 million syndicated commercial bank tranche. The framework aligns with the Loan Market Association’s 2023 green loan principles and provides guidance on fund usage, evaluation, selection, management, and reporting.

The loan will help complete the Keliber project, with a total capital expenditure estimated at about €656 million in 2023 terms, or €667 million adjusted for inflation. This is partially funded by a previously raised equity component of around €250 million. Finnish ECA Finnvera guarantees 80% of the €250 million ECA tranche, aligning with its goal to enhance Finnish enterprises’ competitiveness through various financial services. The €150 million EIB financing supports Europe’s green transition and technological innovation, marking the EIB’s first support for mining critical raw materials in the EU.

Bank of America and Natixis Corporate and Investment Banking served as joint coordinators and bookrunners for the financing package. The syndicated tranche was oversubscribed, with seven international banks participating. The loan’s repayment profile is linked to projected cash flows, with maturities of seven to eight years at a variable interest rate tied to the Euro Interbank Offered Rate.

The loan borrower, Keliber Technology Oy, will be guaranteed by Sibanye-Stillwater and its subsidiaries. The Keliber project, seen as a key part of the Finnish battery value chain and the first integrated lithium project in Europe, is progressing with refinery and mining site construction. Finnish Minerals Group CEO Matti Hietanen noted that the secured financing will enable the project's completion and the start of battery-grade lithium hydroxide production.