Grieg Seafood plans bond buy-back and new issue

Norwegian salmon farmer Grieg Seafood is contemplating the issue of a green hybrid bond to raise NOK 750 million (£60m), it said in a market announcement today.

At the same time, it plans to buy back its previously issued green bonds from holders. The bonds are due in 2029 and are worth approximately NOK 1.904 billion (£151.7m).

The company is offering a price of 105.75% of the nominal amount, plus accrued and unpaid interest. Following the expiry of the buy-back offer, the company intends an early redemption of the remainder of the existing bond under the rules of the bond.

£738m sell-off

Grieg Seafood struggled for cash in recent years but received a significant liquidity boost when it completed the sale of its operations in Finnmark, Norway, and Canada, to the world’s third-largest Atlantic salmon farmer, Cermaq, for £738m in December last year.

The slimmed-down company, which sold its Scottish operations to Scottish Sea Farms for £164m in December 2021, now farms exclusively in Rogaland, central Norway. It harvested 30,462 gutted weight tonnes in Rogaland last year and expects a similar volume in 2026.