Mowi signs EUR 1.8 billion credit agreement
A EUR 1.8 billion (USD 2.1 billion), five-year sustainability-linked credit facility agreement has been signed by Mowi ASA.
According to the Bergen, Norway-headquartered Atlantic salmon farming group, the multicurrency revolving credit facility agreement, which has been made with a consortium of banks and which finalizes terms that were outlined to the Oslo Stock Exchange on 30 June, 2021, is “a significant step” toward its goal of 100 percent green or sustainable financing.
Interest on the facility is linked to Mowi's performance against sustainability key performance indicators, which are consistent with Mowi's overall environmental, social, and corporate governance strategy, the company said.
The principal financial covenant of the facility is a minimum equity ratio of 35 percent, and the facility includes an accordion increase option which provides flexibility for the parties to agree to increase the size of the facility by an additional EUR 300 million (USD 352.1 million) during the term of the facility.
The banking consortium providing the facility comprises DNB Bank, Nordea Bank, filial i Norge, Coöperatieve Rabobank, ABN AMRO Bank., Danske Bank, Skandinaviska Enskilda Banken, and Crédit Agricole Corporate and Investment Bank.
Last month, citing the easing of lockdown restrictions and strengthening demand for salmon, Mowi posted second-quarter 2021 operational earnings before interest and taxes (EBIT) of EUR 137.1 million (USD 154.6 million), representing an increase of EUR 38.5 million (USD 45.2 million) on the operational EBIT achieved in the corresponding period of 2020.
At the same time, its operational revenues for the quarter reached EUR 1 billion (USD 1.2 billion), up from EUR 910.9 million (USD 1.1 billion) in Q2 2020. Its total harvest volume for the three months was 107,977 metric tons (MT) gutted weight, up from 104,303 MT in Q2 2020.
Mowi’s full-year 2021 harvest forecast is 450,000 MT.
Photo courtesy of Mowi