Salmones Camanchaca has rescheduled USD 135 million (EUR 120 million) in revolving credit lines with DNB Bank, Rabobank, and Santander, saying that it is the first salmon company in Chile to ink a sustainability-linked loan that meets the five characteristics outlined by the Loan Market Association (LMA) and the Loan Syndications and Trading Association (LSTA).
The facility – which Camanchaca said will improve liquidity over the next five years – links loan margins to compliance on specific sustainability metrics negotiated with the creditors. The five benchmarks include the reduction of greenhouse gas emissions; the percentage of Aquaculture Stewardship Council-certified biomass; the amount of marine ingredients used in diets per kilogram of salmon produced; the proportion of non-hazardous solid waste that has been recycled; and the labor accident rate.
Reaching these targets will permit the company to contribute to its salmon-farming sustainability goals, while also reducing financial costs of the credit facility by up to five basis points, Salmones Camanchaca announced to the Chilean financial regulator CMF as well as the Oslo bourse.
The interest rate for the credit is based on the Libor rate plus an applicable variable margin – which can vary between 2.25 percent and 3.7 percent per year – and is subject to the ratio of net interest-bearing debt to 12 months rolling earnings before interest, taxes, depreciation, and amortization (EBITDA).
“This modification of the refinancing agreement will suitably shift the amortization schedule of Salmones Camanchaca S.A., which now extends until November 2026, thus improving the cash flow profile for the next five years,” Salmones Camanchaca CEO Manuel Arriagada said.
The company’s shareholders recently approved a capital increase of up to USD 30 million (EUR 25.8 million) to support its 2022-2023 investment plan, with placement expected to be completed by the end of 2021.
The company also announced it posted increased revenue, positive net profit, and a positive EBITDA in the third quarter of 2021. The results represent a turnaround from its 2020 performance, with a Q3 net profit of USD 4.57 million (EUR 4.03 million) versus a Q3 loss of USD 9.53 million (EUR 8.42 million) in the same quarter last year. The company pointed to this as evidence of moving away from weak results attributed to a fall in demand due to the pandemic and the impacts of algae blooms from a dry and sunny summer.
