€100m growth related loan facility secured for Arnarlax

Icelandic Salmon has successfully secured a sustainably linked €100m (£87m) bank facility through its subsidiary Arnarlax.

Chief financial officer Jónas Heiðar Birgisson said the facility will support the company’s growth strategy and enhance operational flexibility. It is also aimed at refinancing existing loans.

The arrangement was carried out in collaboration with DNB, Danske Bank, and the Arion Bank.

He added: “Having a sustainable Linked financing with favourable competitive terms support the company’s vision and ambition to be Icelandic sustainable fish farmer.

“We are happy to continue our collaboration with DNB and Arion Bank and we look forward working with Danske Bank as a strong addition to our team”.

The arrangement encompasses a term loan facility, a revolving facility, and an overdraft facility, complete with the added flexibility of two one-year extension options.

Norwegian-based seafood group SalMar owns a majority stake in Arnarlax.

Meanwhile, Arnarlax has said that for the first time in Iceland it is preparing for winter by switching to a non-medical treatment using the so-called “optilicer” technique using warmed water, with a wellboat from Norway.

The company said: “We have had calm autumn weather conditions recently and results are good so far by using this well-known and proven method to get control of the lice situation and ensure good fish welfare. All treatments are approved by the fish disease committee.

“In addition to delicing, Arnarlax has decided to take out some fish earlier than planned in order to ensure a good biological status on fish heading into the winter period.”

The early harvest had been forced by unprecedented levels of sea lice in the west of Iceland.