Mowi's green bonds issue raises NOK 3.5 billion

The funds raised will be used for "green projects" under Mowi's Green and Sustainability-Linked Financing Framework.
Mowi marine facility in Beitveitnes, Midt Region, Norway.
Mowi marine facility in Beitveitnes, Midt Region, Norway. Photo: Mowi.

Norwegian salmon farming giant Mowi has successfully issued NOK 3,500 million (EUR 298 million) in senior unsecured green bonds, the company confirmed in a press announcement.

The green bond issue was "well oversubscribed", the company said.

Green bonds are similar to traditional bonds, but the funds raised by selling them are earmarked for use in projects that have positive environmental impacts, such as initiatives addressing climate change and environmental sustainability.

In Mowi's case, the funds raised will be used for projects which fit the criteria under Mowi's Green and Sustainability-Linked Financing Framework, established in May 2023.

The framework defines eligible "green projects" under five separate categories linked with the UN Sustainable Development Goals: environmentally sustainable aquaculture, renewable energy and electrification, energy efficiency, water & wastewater management, and waste management & circular economy.

Mowi's green bonds to be listed on the Oslo Stock Exchange

The bonds are divided into two tranches, with the first tranche of NOK 2,500 million (EUR 213 million) with a five-year maturity at a coupon rate tied to the 3-month Nibor plus a 1.13% margin per annum.

The second tranche involved NOK 1,000 million (EUR 85 million) with an eight-year maturity, featuring a fixed coupon of 3-month Nibor plus a 1.5% margin per annum, which is equivalent to an annual rate of 5.407%.

The company will convert all issued amounts and their respective coupons into floating rates in euros. Both tranches are slated for settlement on May 3, 2024, with plans to list the bonds on the Oslo Stock Exchange.

The transaction was managed by Danske Bank, serving as the Green Bond Advisor, alongside DNB Markets, Nordea, and SEB as Joint Global Coordinators, and ABN AMRO, Crédit Agricole Corporate and Investment Bank, and Rabobank as Joint Lead Managers.

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