Grieg raises cash for green investment

Grieg Seafood has successfully extended a large unsecured green bond from NOK 1 billion to NOK 1.5 billion (£127 million).
The company told the Oslo Stock Exchange the additional NOK 500 billion (£42.5 million) will be used to finance environmental related projects. The issue will mature in June 2025.
Grieg says sustainable farming practices are the foundation of its operations. It adds: “The lowest possible environmental impact and the best possible fish welfare drive economic profitability.
“Towards 2025, we aim for global growth, cost leadership in each region and to evolve from a pure salmon supplier to an innovation partner for selected customers.”
CEO Andreas Kvame said: “We farm the ocean responsibly and with as little impact as possible. Every day we strive to reduce our footprint and farm in co-existence with nature and wild species.”
Green bonds are debt instruments issued to raise capital to finance investments that offer positive environmental, economic and climate benefits.
It has been a difficult few months for Grieg, one of the world’s top salmon farming companies. Like most businesses in this sector, its financial results have been affected by the Covid-19 pandemic. However, Grieg’s third quarter results published last month showed it had suffered more than most, with a negative EBIT of NOK 192 million. However, it remained upbeat about future prospects.
But at the same time it dropped a bombshell by announcing that it plans to sell its Shetland business next year and concentrate its activities at its Norwegian and Canadian farms. The company employs 900 people worldwide, including almost 200 on Shetland.
It hopes a deal to sell the Shetland operation, which could net Grieg up to £125 million, can be completed before the end of 2021.