Lerøy, which expects to harvest up to 210,000 gwt of salmonids this year, is seeking green bond finance. Photo: Lerøy Seafood Group.

Lerøy seeks green bond funding

Scottish Sea Farms co-owner Lerøy Seafood Group looks set to join the growing number of large salmon farming companies to raise funds via so-called “green bonds”.

Published Last updated

In a market announcement this morning, the Norwegian salmonid producer said it had mandated Danske Bank and DNB Markets as global coordinators and green bond advisors, and Danske Bank, DNB Markets and Pareto Securities as joint lead managers, to arrange a series of fixed income digital investor meetings next Wednesday, September 8.

One or more NOK denominated senior unsecured green bond issues with tenors of 5-10 years, with preference for longer dated tenors, may follow.

Mowi, Grieg and SalMar

Green bonds have already been used by salmon farmers Mowi, Grieg Seafood and SalMar, which shares 50/50 ownership of Scottish Sea Farms with Lerøy. The bonds enable capital-raising and investment for new and existing projects with environmental benefits. Companies are expected to comply with the voluntary Green Bond Principles published in June 2018 by the International Capital Market Association (ICMA).

Lerøy, which also operates in the caught-fish sector, did not say how much it is seeking to raise or what the money would be used for, but has a record of significant investments in its businesses, including smolt/post-smolt facilities.

A facility in Kjærelva in southern Norway has now been completed, producing around 4,000 tonnes of biomass per year, and the company completed the final construction stage of its new smolt facility in Laksefjord in northern Norway in Q4 2020. That facility is expected to reach full utilisation this year.

The second stage of development of Lerøy’s Belsvik facility in central Norway is on schedule. It should be complete by the start of 2022 and will produce around 5,000 tonnes of biomass per year.


Lerøy is in negotiations on a possible further development of a new recirculating aquaculture system (RAS) facility in Vestland county, which it plans to develop the facility in three stages.

The first two stages would cost around NOK 1 billion and will allow further increases in post-smolt production. The final stage will also provide facilities for post-smolt production but could be used for salmon production up to harvest size.

The development is projected to provide an annual increase in production in the sea of 8,000-10,000 gutted weight tonnes. Construction work is scheduled for completion in 2023.

210,000 tonnes in 2021

Lerøy anticipates a harvest volume for 2021, including associates, of 205,000-210,000 tonnes, with ongoing investments and additional improvement initiatives providing further growth in future.

“We are convinced that this growth, combined with other improvement measures, will reduce the Group’s release from stock costs for salmon and trout in 2021 and going forward,” the company said in its report for the second quarter of this year.

Lerøy has set a target to reduce greenhouse gas emissions by 46% by 2030, something that is also likely to require investment.