Proximar has signed Japan’s ‘first’ blue-sustainability loan which will fund the development of its land-based recirculating aquaculture system for Atlantic salmon.
The corporate loan of JPY 8.8 billion (NOK 680 million) is issued by a banking syndicate which includes Mizuho Bank Ltd, The Shizuoka Bank and Development Bank of Japan.
“Signing this blue sustainability loan in Japan proves our strong commitment to sustainable fisheries, salmon farming and food supply, in addition to bringing us to our ~45 percent debt ratio target at attractive terms,” said Joachim Nielsen, CEO of Proximar Seafood.
Critical funding
The loan will be structured in two disbursements, where the first disbursement will be executed in April. The second will come at the time of take-over of the post-smolt grow-out building in the third quarter of 2023.
Mizuho Bank Ltd has been mandated as an arranger of the syndicated loan agreement which is issued by Mizuho, The Shizuoka Bank and Development Bank of Japan, at an interest rate below 5%.
Blue-sustainability loans specifically address Goal 14 (Life below water) of the United Nations Sustainability Development Goals to fund projects which promote marine conservation and sustainable fisheries.
Proximar recently successfully transferred the first batch of Atlantic salmon from the first feeding department to the nursery.
Construction of the facility is progressing according to schedule enabling the company to run the fish farm according to its operational plan.
With more than 88% of the civil works now finished, Proximar expects to have completed the facility in the third quarter of 2023.
