Per Grieg-backed land-based salmon company Proximar Seafood has received a loan offer from a syndicate consisting of two large Japanese banks for JPY 8.8 billion (€62.2 million/$66.3 million).
With this loan, which is subject to final approval, the Japan-based company will secure the complete debt financing for its first land-based salmon farming facility outside Tokyo.
Proximar has evaluated multiple debt financing alternatives over the last two years and this offer represents the company's preferred option for debt financing in line with its targeted debt ratio, the company said.
"To obtain a complete debt solution for both the construction and operating phases at attractive terms marks a breakthrough for the company," Proximar CEO Joachim Nielsen said.
The loan implies Proximar will reach its guide of about 45 percent debt ratio.
The loan would have an interest rate below 5 percent and addresses both the remaining construction financing as well as operational financing.
The first part of the loan is scheduled for March 2023 and the second during summer 2023, at the time of takeover of the post-smolt growout building.
Earlier this year, Proximar Seafood received a loan offer from a Japanese bank for a post-construction loan. The JPY 4 billion (€ 28 million/$29 million) loan offer was approved on Dec. 28
Earlier this month, Proximar CFO Pal Grimsrud resigned from the company.
The Oslo stock exchange-listed company has been constructing its first land-based salmon farm just outside Tokyo, Japan, since March 2021.
The construction of Proximar’s facility will be completed in 2023, with harvesting to begin from mid-2024.
The expected harvested volume is around 2,500 metric tons, increasing to a targeted 5,300 metric tons when operating at full capacity in 2027.
