Proximar seafood gets JPY 4 Billion loan

Proximar seafood gets JPY 4 Billion loan

Proximar Seafood has received a loan offer from a Japanese bank for JPY 4 billion (approximately NOK 300 million) through its Japanese subsidiary, Proximar Ltd., to finance the production of Atlantic salmon at their facility in Japan.

CEO Joachim Nielsen said in a statement: "Securing debt financing is a key priority for Proximar. This loan offer shows that we are able to attract credit providers and is a steppingstone in our post-construction financing plan. With the received offer, construction loan discussions are now also expected to progress more efficiently."

The loan, which was approved on December 28, 2022, will be available for drawdown in the end of 2024, following the company's first planned harvest in mid-2024. It also allows for the possibility of further subordinated lending to reach Proximar's debt target.

The company is in ongoing discussions with banks and financial institutions about further construction and post-construction funding, and is optimistic about reaching its goal of approximately 45% debt level based on the total project cost. Production at the facility is currently underway, with the second batch of eggs inserted in December and the first batch successfully hatching.

About Proximar Seafood

Proximar Seafood is a land-based salmon farming company that is in the process of constructing the first large-scale fish farm for Atlantic salmon in Japan. The farm, located in Oyama, is expected to be completed in the third quarter of 2023 and will have an annual production capacity of 5,300 tonnes of head-on-gutted salmon. Production at the farm began in October 2022, and the first harvest is expected to be ready by mid-2024

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