Japan salmon RAS project secures £165m debt facility
Financing enables company to accelerate growth, says chief executive
Soul of Japan K.K. (SOJ), which is building a land-based salmon farm in Japan’s Mie Prefecture, has announced the successful signing of a JPY33 billion (equivalent to US $210 million / £165m) long-term debt facility provided by Sumitomo Mitsui Banking Corporation (SMBC) to the project.
SOJ, an affiliate of Pure Salmon Group owned by Singapore-headquartered 8F Asset Management, said the financing will support the construction and development of a state-of-the-art recirculating aquaculture system (RAS) facility, processing and pet nutrition facility in Tsu City, Mie.
The facility will produce 10,000 tonnes of Atlantic salmon annually
and will be housed in a total of 70,000m² of building space, spanning over a
137,000m² plot.
SOJ is partnering with Norway-based Pure Salmon Technology to implement RAS technology. The transaction is supported by 8F Asset Management.
Central location
Tsu City is located at what SOJ says is an optimal distance from Tokyo, Nagoya, and Osaka, allowing easy distribution to Japan’s most populous cities and centres of salmon consumption.
SOJ chief executive Erol Emed said: “This debt financing allows us to accelerate our growth and contribute to Japan’s food security while minimising our environmental footprint. We are committed to delivering high-quality, locally produced salmon to consumers.”
Karim Ghannam, chief investment officer at 8F Asset Management, said: “We are excited to work with SMBC, the banking group and the management teams of SOJ and Pure Salmon to facilitate this transaction that recognises the importance of sustainable aquaculture and its positive impact on Japan’s economy and the environment.”
