Salmon Evolution, Proximar sign blue loan deals

Land-based salmon-farming firms Salmon Evolution and Proximar Seafood have each received multimillion-dollar "blue" loans. 

Molde, Norway-headquartered Salmon Evolution is building a land-based salmon farm it expects will eventually produce 50,000 metric tons of Atlantic salmon annually. 

On 29 March, 2023, it announced a binding loan agreement with DNB and Nordea for a green debt financing package worth NOK 1.55 billion (USD 150 million, EUR 138 million). The new financing, the company said, relates to phase 1 and 2 of its land-based flow-through salmon aquaculture facility in Indre Harøy, Norway. 

The financing package consists of a NOK 525 million (USD 50 million, EUR 46 million) non-amortizing term loan facility, a NOK 250 million (USD 24 million, EUR 22 million) RCF capex facility, and a NOK 775 (USD 73 million, EUR 67 million) construction facility, according to a release posted to the Oslo Børs exchange.

The new funding will help pay for the second phase of construction of its flow-through facility, which Salmon Evolution said will require an estimated capital expenditure of NOK 1.6 billion to NOK 1.7 billion (USD 155 million to USD 165 million, EUR 142 million to EUR 151 million).

“The remaining capital requirements are planned financed by cash at hand, operational cash flow, equity or other sources,” the company said.

Salmon Evolution said the new package is the result of a “thorough” process with “strong interest” from leading banks.

On 31 March, Proximar announced it signed the first “blue-sustainability loan” in Japan with three Japanese banks. 

The new corporate loan, worth JPY 8.8 billion (USD 66.4 million, EUR 60.9 million), was issued by a syndicate of Mizuho Bank, The Shizuoka Bank, and Development Bank of Japan. The proceeds of the loan, the company said, will be used to develop its land-based recirculating aquaculture system facility in Japan.

Proximar first announced the loan in February, after it received a “highly confident letter” that it said should be “considered a strong statement of comfort from the banks.”

“Signing this blue sustainability loan in Japan proves our strong commitment to sustainable fisheries, salmon farming and food supply, in addition to bringing us to our 45 percent debt ratio target at attractive terms,” Proximar Seafood CEO Joachim Nielsen said.

Mizuho Bank, in a release, said the new loan helps it strengthen its initiatives toward “realizing a sustainable society.”

“We highly evaluate Proximar’s contribution and approach to the marine conservation. We therefore proposed to financially support their project through the use of a blue-sustainability loan,” the company said. 

Photo courtesy of Salmon Evolution