Norwegian salmon-farming company SalMar has issued NOK 4.35 billion (USD 388 million, EUR 370 million) in green bonds.
SalMar first announced its plans to issue new green bonds on the Oslo Børs on 21 January. The company mandated Danske Bank, DNB Markets, Nordea, and SEB as global coordinators, as well as Rabobank as joint lead manager, to arrange for the bonds for the 22 January investor meeting.
In an announcement on 23 January, the company said it successfully issued the bonds in two tranches.
The first tranche comprises NOK 3.25 billion (USD 290 million, EUR 276 million) in five-year senior unsecured green bonds, and the second is NOK 1.1 billion (USD 98 million, EUR 93 million) in seven-year senior unsecured green bonds. The company said an application will be made for both tranches to be listed on the Oslo Børs, with a settlement date set for 30 January.
Salmon-farming companies have increasingly used green bonds as a means to acquiring funding.
Green bonds are “themed bonds” which have a designated goal for the investment – typically a goal related to climate change or sustainable development. The bonds are frequently attractive to investors due to their tax-exempt status.
In 2021, the market for green bonds was estimated at USD 1 trillion (EUR 952 billion) and, since that time, have expanded into a USD 2.5 trillion (EUR 2.4 trillion) market, according to Goldman Sachs.
Fellow Norwegian salmon farmer Mowi issued NOK 3.5 billion (USD 312 million, EUR 297 million) in green bonds in April 2024.
