Grieg Seafood has completed a NOK 750 million (€68.25 million) perpetual green hybrid bond issue, securing lower-cost capital and strengthening its balance sheet as it pursues further investment in its Rogaland salmon farming operations.
The bond carries a coupon of three-month NIBOR plus 390 basis points and has a first call date after four years. The margin represents an improvement of 185 basis points compared with the company’s existing hybrid bond.
Settlement is scheduled for 22 June.
Net proceeds from the issue will be used to finance projects covered by Grieg Seafood’s Green Bond Framework, including refinancing existing obligations originally incurred to fund eligible green investments.
The hybrid bond will be accounted for as equity on the company’s balance sheet and will rank as a subordinated obligation.
Grieg Seafood said the transaction strengthens its liquidity, equity position and financial flexibility as it implements its new strategy and continues developing its fish farming assets in Rogaland.
The company said investor interest was strong, with the transaction substantially oversubscribed across investor groups.
The bond issue follows Grieg Seafood’s announcement earlier this week of a strategic refocus on its Rogaland operations after exiting British Columbia and Newfoundland. The company has described Rogaland as a platform for future growth, supported by investments in fish health, production efficiency and farming infrastructure.
Nordea acted as bookrunner for the transaction.
Grieg Seafood farms Atlantic salmon in Rogaland and is headquartered in Bergen. The company has been listed on the Oslo Stock Exchange since 2007.