The issue of new shares in Samherji Fish Farming through equity private placement for financing its Salmon Garden, a new land-based aquaculture facility in Reykjanes, Iceland, has been increased from €125 million to €210 following strong investor demand.
Salmon Garden will be built in three phases. When fully-constructed, the farm will produce 36,000 tonnes of liveweight salmon, equivalent to 30,000 head-on gutted (HOG) tonnes. It is also estimated that, when fully built and operating at full capacity, it will generate around €300 million in annual export revenue.
Financing for the first phase of the Salmon Garden was completed at the end of April. It consisted of two components: the equity private placement of €125 million and a syndicated loan of €110 million. It was also announced that the equity round would be upsized due to growing investor interest. This upsizing is now complete, and a subscription agreement has been signed for the issue of new shares totalling €210 million.
Total financing, including the syndicated loan, amounts to €320 million, or over ISK 45 billion.
With the equity placement from shareholders for the first two phases of Salmon Garden finalised, Samherji Fish Farming can now construct the facility faster than previously planned.
Thorsteinn Már Baldvinsson, Chairman of the Board of Directors of Samherji Fish Farming, said the equity private placement is a vote of confidence that comes with great responsibility.
“Just like catching and processing, land-based aquaculture is a capital-intensive, knowledge-driven industry, where value creation depends upon heavy investment. Increased investor interest in this project is a vote of confidence for Samherji Fish Farming and reflects their trust in the Salmon Garden. Accepting funds from investors entails significant responsibility. They assume we will live up to it and fulfil their expectations, which we intend to do. I want to thank the employees of Samherji Fish Farming, as well as our partners and advisors, for their professionalism and a job well done in relation to this project,” he said.
Groundworks for the Salmon Garden began in October 2024. It will be situated in HS Orka’s Resource Park, adjacent to the Reykjanes Geothermal Power Plant, and will have access to 100% renewable energy.
The facility will include a freshwater RAS hatchery, an on-growing section with three on-growing stages, and a harvesting facility.
A group of domestic and foreign investors provided the equity capital. The investors are AF3 slhf, (an Icelandic private equity fund managed by Alfa Framtak ehf), CCap (a Dutch family-owned investment company), Snaebol ehf (an Icelandic family-owned investment company), and six Icelandic pension funds: Almenni Pension Fund, Festa Pension Fund, Gildi Pension Fund, Pension Fund of Commerce, LSR and Stapi Pension Fund.
Arctic Securities and Íslandsbanki Corporate Finance acted as joint financial advisors to Samherji Fish Farming.
Approximately 100 people will work at the Salmon Garden, with the majority in knowledge-based roles. The facility will also benefit from the support of the 120 employees and specialists currently employed by Samherji Fish Farming.
Samherji Fish Farming has successfully farmed Arctic char and salmon for over two decades. The company is currently the world’s largest producer of Arctic char, with a market share of around 30%.
