Strong demand for Grieg's green bond

The company has announced that it has completed the successful placement of a perpetual green hybrid bond of NOK 750 million (£59m). The offer was significantly oversubscribed.

The announcement said the first redemption date will be after four years and a coupon of three months NIBOR + 390bps, which entails an improvement of 185bps compared to the outstanding hybrid bond. The settlement date is set to 22 June 2026.

Grieg said the net proceeds from the bond issue will be used for green projects as further defined by the company’s green bond framework, including by way of refinancing existing obligations originally incurred to finance such green projects.

It added: “The hybrid bond will be accounted for as equity in the balance sheet and constitute subordinated obligations for the company.

“The hybrid bond strengthens Grieg Seafood’s liquidity, equity, and financial flexibility to pursue its ambitions for further investments and development of its Rogaland fish farming assets.”

Grieg says that sustainable farming practices are the foundation of its operations, stating: “The lowest possible environmental impact and the best possible fish welfare is both an ethical responsibility and drive economic profitability”.

Last year Grieg sold its Canadian business and part of its Norwegian farming operation to Mitsubishi owned but Norwegian based Cermaq.

Earlier this week salmon farming giant SalMar raised the equivalent of £217m in a new unsecured  green bond.