Hybar has secured $700m in loan and equity financing for its sustainable scrap metal recycling/steel rebar mill in north-east Arkansas, US.

The company will use the funding to construct and manage the facility.

The equity part of the transaction was led by the specialised climate investment strategy TPG Rise Climate.

Construction of the rebar mill will cost $470m. The remaining funds will be utilised to set up and operate the mill and cover certain debt service expenses throughout its development.

The facility is being built on a 1,300-acre greenfield location in north-east Arkansas with direct access to barge, rail, and truck transport.

The mill is expected to produce a range of high-yielding rebar, which will mostly be utilised in large infrastructure projects such as those funded by the Infrastructure Investment and Jobs Act or the Inflation Reduction Act.

The factory intends to be LEED accredited, joining Big River Steel as the country's only two such mills that have received such a certification.

SMS group is providing Hybar’s mill technology, plus a water treatment plant. Meanwhile, Primetals Technologies is supplying the substation for the project.

Hybar CEO Dave Stickler said: “The Climate Bond certification aligns perfectly with Hybar’s plan to offer our customers competitively priced rebar that is also the greenest rebar in the market.”

The facility is set to be completed within 22 months.