Japan land-based salmon farmer fully financed until first harvest

Grieg Kapital’s loan of up to approximately NOK 130 million in long-term debt has provided the remaining financing required by Japanese banks that are providing Proximar with a bank loan of JPY 8.8 billion (equivalent to approximately NOK 685 million, or £52m).

At the end of April, the company carried out a private placement of NOK 73.6m. With the private issue and the loan facilities, Proximar is therefore fully financed until the first harvest of Atlantic salmon planned for Q3 2024.

“This is the last piece of Proximar’s funding, and I am very pleased to announce that we have now fully funded our activities up to the first slaughter. By both raising equity and this loan agreement, we can focus fully on construction and production,” said Proximar chief executive Joachim Nielsen in a stock exchange announcement.

The loan must be repaid in 2.5 years. The loan is subject to an arrangement fee of 5%, and must have an interest rate of NIBOR 1M + 7.25% which is paid three months in advance, with a first advance payment of 12 months for part of the interest (5%).

Norwegian-owned Proximar plans to produce 5,300 gutted weight tonnes of Atlantic salmon annually at Oyama, situated at the foot of Mount Fuji and about an hour’s drive from Tokyo.