SalMar goes to the money market for NOK 1 billion
SalMar, the world’s second largest Atlantic salmon farmer, has today issued a new commercial paper of NOK 1 billion (£72.5 million).
A commercial paper is a money-market security issued by large corporations to obtain funds to meet short-term debt obligations and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note. SalMar has a credit rating of BBB+ from Nordic Credit Rating, and the commercial paper issue is managed by DNB Markets.
SalMar’s paper matures in six months, on September 15, and has a coupon (interest rate) of 5.04%.
The Norwegian fish farmer made an operating profit (operational EBIT) of NOK 1.485 billion (£105.7m) in the last quarter of 2024, and expects to invest NOK 1.9 billion (£135m) this year, with the majority of the investments being related to fish welfare.
SalMar expects to harvest 254,000 gutted weight tonnes of salmon in Norway this year, 9,000 tonnes from offshore subsidiary SalMar Ocean, 15,000 tonnes in Iceland, and 32,000 tonnes in Scottish Sea Farms (100% basis), which it owns 50-50 with fellow Norwegian salmon farmer, Lerøy. Taking into account its half share from Scottish Sea Farms, a total of 294,000 tonnes is expected for the group, a growth of 17% in harvest volume compared to 2024.
