Chilean salmon farmer reaches an agreement with DNB, Rabobank and Chile’s Banco Bci.
Latin Finance reports that Salmones Austral writes that it has signed a deal with three banks to take a USD 40 million loan.
The USD 40 million loan will complement a “revolving” line of US USD 20 million that the firm currently has with the same banks, DNB, Rabobank and Chile’s Banco Bci. This is ahead of its plans to go public.
“Both mechanisms will allow to continue with the projects of growth and productive efficiencies that the firm outlined within the strategic investment plan 2020-2023, and which amounts to US $ 100 million,” wrote Salmones Austral.
The new funds will be used for a new hatchery that the company is building in the Los Lagos region, in southern Chile, should be operational in 2021.
In turn, the resources will be used to finance the joint venture with Altor Fund III and Bain Capital-owned Nova Austral in the Magallanes and Chilean Antarctic region, which began operations in early April.
“This new financing is very well structured and flexible. Furthermore, it reflects the banks’ confidence in the company’s financial and operational strength,” said Salmones Austral Vice President Christian Samsing.
“When the crisis is over, we must be prepared for the new scenario for the salmon industry in which efficiency and sustainability will be key factors to compete in the markets in which we are present,” added Samsing.
Last month, Salmones Austral announced that it hopes to raise USD 47.7 million in an IPO n the Santiago later this year, though it acknowledged that the last step could take time because of the pandemic.
Feed giant BioMar owns 22.9 per cent of Salmones Austral’s shareholding.