Samherji raises more capital for land-based farm

The company said the decision was led by strong investor demand.

Called The Salmon Garden (pictured), the new facility is sited in Reykjanes, in south-west Iceland. It will be built in three phases. When completed, it will produce 36,000 tons of liveweight salmon, equivalent to 30,000 heads-on gutted (HOG) tons.

Samherji Fish Farming Chairman Thorsteinn Már Baldvinsson said the equity private placement was a vote of confidence that came with great responsibility.

He added: "Just like catching and processing, land-based aquaculture is a capital-intensive, knowledge-driven industry, where value creation depends upon heavy investment. Increased investor interest in this project is a vote of confidence for Samherji Fish Farming and reflects their trust in the Salmon Garden.”

Financing for the first phase of the Salmon Garden was completed at the end of April. It consisted of two components: the equity private placement of €125m and a syndicated loan of €110m.

It was simultaneously announced that the equity round would be upsized due to growing investor interest. The exercise is now complete, and a subscription agreement has been signed for the issue of new shares totalling €210m.

The total financing, including the syndicated loan, amounts to €320m or over ISK 45 billion (£275m).

The company added: “Equity placement from shareholders for the first two phases of the Salmon Garden has now been finalised, enabling Samherji Fish Farming to construct the facility faster than previously planned.

"As a result, the company can immediately begin preparing the design and construction of the second phase of the facility.”