Norcod to receive NOK 50m extra credit facility

Norwegian whitefish farmer Norcod has been granted additional credit worth NOK 50m (£3.7m) which it says will give it more financial and operational headroom.

The credit facility has come from Export Finance Norway and comes on top of NOK 480m (£35m) granted a few weeks ago.

Norcod is the country’s leading cod farmer and while it encountered a few early maturation problems earlier this year, it has embarked on an ambitious growth path.

CEO Christian Riber said: “Given the challenging situation in global capital markets with increased interest rates and higher macroeconomic uncertainty, this truly shows that our shareholders and financial partners have strong belief in Norcod.

“The world is looking for pure and sustainable sources of food to serve increased human demand, and our product clearly demonstrates its market potential and naturally fits in. I am excited to see that our shareholders and financial partners share this vision.”

Chief Financial Officer Arne Kristian Hoset added: “During the last months, we have worked diligently to improve our financial capacity and establish a robust equity base to enable further growth.

“In April, we successfully increased our operational liquidity by NOK 225m (£16m). At the same time, we improved our equity situation by approximately NOK 90m (£6.6m) in debt restructuring. In May, we extended our credit line with our main bank… securing NOK 75m (£5.5m) in liquid funds. “

He said this additional credit of NOK 50m came on top of these initiatives.

“All this, combined with the vertical integration of Kråkøy Slakteri [the mid-Norwegian slaughterhouse] that we acquired in June, means Norcod has taken a large step on its growth journey.”