Salmon giant Mowi raises €250m with green bonds issue
The world’s biggest salmon farmer, Mowi ASA, has successfully issued a total of NOK 2.7 billion (€250 million / £216.6m) in new senior unsecured green bonds, it announced today.
The issue is split between two tranches:
- NOK 2bn (€185m) has been issued with a tenor of 5 years and a floating coupon of 3-month NIBOR (Norwegian interbank offered rate) + 1.10% margin per annum.
- NOK 700m (€65m) has been issued with a tenor of 5 years and a fixed coupon of 5.524% p.a. (equivalent to a 3-month NIBOR + 1.10% margin p.a.).
The transaction was well oversubscribed, said Mowi.
The proceeds from the green bond issues will be used for eligible green projects as defined in Mowi's new Green Financing Framework.
Sustainable feed
The Green Project categories outlined in the Framework include environmentally sustainable aquaculture, which has several sub-categories including sustainable feed, sustainable practices for improved resilience, sustainable fish farms centred around biodiversity, pollution prevention, and fish welfare, and sustainable processing with a strong focus on plastic packaging management, energy consumption, water usage, and waste management.
Other project categories include renewable energy and electrification, energy efficiency, water and wastewater management, and waste management and the circular economy.
Investments in fossil fuel machinery and/or equipment are not eligible for financing under the Framework except when financing hybrid vessels.
First in seafood
Mowi became the first seafood company in the world to issue a green bond in 2020, and in September 2021 it established a loan facility linked to its performance against carefully selected sustainability indicators.
“Today, Mowi is proud that 100% of its outstanding loans and bonds are in sustainable format, reinforcing our commitment to advancing company-wide climate targets and driving investments in a low-carbon and environmentally sustainable economy,” the company states in the Framework document.
