Workers at an Arnarlax sea farm.
Workers at an Arnarlax sea farm.Photo: Arnarlax.

Icelandic Salmon's Arnarlax secures €100 million in sustainability credit

New credit line for Icelandic Salmon subsidiary is supported by DNB, Arion Bank and Danske Bank.

Icelandic salmon farmer Arnarlax has announced a new financing agreeement totalling EUR 100 million (USD $107 million), which it says "will support the company's growth strategy and enhance operational flexibility".

The Sustainable Linked Facility agreement is supported by DNB, Danske Bank, and Arion Bank, and is aimed at refinancing existing loan facilities, the company said.

"We have secured a EUR 100 million sustainable linked credit facility, with a three-year tenure, through a good collaborative effort with DNB, Danske Bank, and Arion Bank," said Arnarlax CFO Jónas Heiðar Birgisson.

Birgisson said the financing would support the company's vision and ambition to be a sustainable Icelandic fish farmer.

"We are happy to continue our collaboration with DNB and Arion Bank and we look forward working with Danske bank as a strong addition to our team," he said.

The facility encompasses a term loan facility, a revolving facility, and an overdraft facility, with additional flexibility of two one-year extension options, the company said announcing the financial move.

Challening times for Iceland's net pen salmon farmers due to sea lice infestations

Arnarlax is a wholly-owned subsidiary of Icelandic Salmon, which is itself 51% owned by Norwegian salmon farming giant SalMar.

The company has recently been in the spotlight due to significant sea lice infestations at its Westfjords farming site in Iceland. Its competitor, the Mowi-owned Arctic Fish, has fallen under similar scrutiny as sea lice infections escalated at its Tálknafjörður site.

Icelandic Salmon began trading on the Nasdaq First North Growth Market in Iceland on 29 September.

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