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Mowi agrees €1.8bn credit deal linked to sustainability record

Fish in a Mowi salmon farm at Uist. The company is linking the interest rate it pays on bank credit to its sustainability performance. Photo: Mowi / Andrew Godfrey Photography.
Fish in a Mowi salmon farm at Uist. The company is linking the interest rate it pays on bank credit to its sustainability performance. Photo: Mowi / Andrew Godfrey Photography.

The world’s biggest salmon farmer, Mowi, has refinanced its existing bank facility with a €1.8 billion (£1.54bn) five-year senior secured sustainability-linked multicurrency revolving credit facility.

The credit deal is with DNB Bank ASA, Nordea Bank Abp, filial i Norge, Coöperatieve Rabobank U.A., ABN AMRO Bank N.V., Danske Bank A/S, Skandinaviska Enskilda Banken AB (publ) and Crédit Agricole Corporate & Investment Bank.

Interest on the facility is linked to Mowi’s performance against sustainability key performance indicators (KPIs) which are consistent with Mowi’s overall environmental, social, and governance (ESG) strategy.

Mowi said the sustainability-linked facility is a significant step towards its goal of 100% green or sustainable financing.

The principal financial covenant of the facility is a minimum equity ratio of 35%, 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 €300 million during the term of the facility.

The refinancing is subject to final documentation.