Salmon exporter ISI completes financial restructuring

The company said it has successfully strengthened its financial position through debt restructuring, interest rate reduction, and enhanced liquidity.

ISI hf. completed a primary refinancing with the issue of the “ICESEA 28 10 bond”, with a maturity of three and a half  years.

This transaction reduced short-term debt by €27.6m (£23.5m) , with a corresponding increase in long-term debt.

 The effective interest rate is now approximately 5.2%, considering currency swap agreements based on current exchange and Euribor rates. The new terms are expected to result in a substantial reduction in the company’s interest expenses.

The refinancing of foreign bank loans has also reduced credit margins by 0.5–1.0 percentage points. The group’s loan structure has been simplified, contributing to improved oversight and operational efficiency.

Following the refinancing, ISI hf.’s long-term debt now stands at approximately €35m (£30m). The share of long-term debt has increased, and a better balance has been achieved between long- and short-term liabilities, strengthening the company’s financial position and increasing strategic flexibility.

CEO Ægir Páll Friðbertsson said: “I’m pleased that our refinancing has been completed. By replacing the previous bond with a new 3.5-year bond, simplifying our debt structure, and lowering our interest burden, we’ve established a solid foundation for continued healthy operations and future growth.

“With interest rates declining and a balanced debt portfolio, we are in a strong position to maintain financial stability and deliver on our operational goals.”

ISI, which mainly exports farmed  salmon, mackerel and cod,  had a major operation in the UK (Grimsby) until two years ago which it sold to the Danish company Espersen.

Last week, however, Espersen has just announced that it would be closing the Grimsby site with the loss of 115 jobs. The company cited “challenging market conditions.”