Mowi ready for a further green bond issue

Salmon farming giant Mowi is set to raise additional finance through issuing more green bonds, the company announced yesterday.

In a stock exchange announcement, Mowi said that it has mandated Danske Bank (Green Bond Advisor), DNB Markets, Nordea and SEB as Global Coordinators and Joint Lead Managers, and ABN AMRO, Crédit Agricole Corporate and Investment Bank and Rabobank as Joint Lead Managers to arrange “a series of physical and virtual fixed income investor meetings” commencing today, 23 April.

The announcement went on: “One or more NOK denominated senior unsecured green bond issues (swapped to EUR) with a minimum tenor of five years may follow, subject to inter alia market conditions.”

Last month, Mowi announced the assignment of a BBB+ investment grade rating with “stable outlook” from Nordic Credit Rating.

Mowi was the first seafood company to issue green bonds, in 2020. Proceeds from its inaugural green bond were allocated to producing sustainable fish feed using only certified deforestation-free soy, essential for reducing the carbon footprint of salmon, and to investing in freshwater facilities employing recirculating aquaculture systems (RAS) that drastically reduce dependency on external freshwater resources and can reduce time in sea.

Green bonds are a type of fixed-income investment intended to fund projects with a positive environmental impact. Like traditional bonds, green bonds offer investors a stated return and come with a promise to use the proceeds to finance or refinance sustainable projects, either in part or whole. They are normally certified by a third party, and in some jurisdictions come with tax incentives for the investor.