SalMar is seeking to raise up to €250m with a green bond issue. Photo: SalMar.

SalMar seeks to raise €250m with green bond issue

Norwegian salmon farmer SalMar, which co-owns Scottish Sea Farms, is seeking to raise up to €250 million (£215m) through a bond issue.

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The move follows the assignment to the company of an A- rating with stable outlook from Nordic Credit Rating.

SalMar said in a press release that it had mandated Danske Bank, DNB Markets and Nordea as joint lead managers and green bond advisors to arrange a series of fixed income investor calls commencing on Monday, April 12.

A EUR or NOK denominated senior unsecured green bond issue of up to €250 million, or the equivalent in NOK, with a tenor (maturity period) of 5.75 years may follow.

Voluntary principles

Green bonds enable capital-raising and investment for new and existing projects with environmental benefits and have been used by other salmon farmers.

Mowi raised €200m with a five-year, inaugural green bond issue in January last year and Grieg raised NOK 1 billion by issuing a five-year green bond in June.

Companies raising money with green bonds are expected to comply with the voluntary Green Bond Principles published in June 2018 by the International Capital Market Association (ICMA).