Proximar secures one billion yen in loan capital

Proximar Seafood has secured two loan agreements worth a total of one billion Japanese yen for its Mount Fuji RAS salmon farm project.

The figure, broadly equivalent to £5.3m or NOK 75 million, will be used for working capital and to strengthen liquidity as the company moves towards full production.

Last month the company announced, along with its Q2 results, that it is about to carry out its first production harvest on 30 September. This will be a trial harvest before initiating daily harvesting in the fourth quarter.

It also confirmed stable and good biological conditions supporting a healthy biomass development with no significant incidents.

Like all start-ups, this is a tense time for new salmon ventures because revenue has yet to flow in while costs continue to mount. But excitement is mounting at Norwegian-owned Proximar as it prepares to receive its first sales revenue.

Proximar last month reported continued growth in fish stock with a total biomass of 360 metric tonnes by the end of the period, up from 112 metric tonnes at the end of Q1. It will have 530 tonnes by this month.

The company said the loans were provided on attractive terms and have until three years before they mature.

They are provided by two separate banks, of which one loan of 500 million yen will be paid out on 20 September. The second loan of 500 million yen is a credit facility which will be available by the end of this month.

Proximar says its location, near one of the world’s most important fish markets implies significant advantages, both in terms of reduced cost and carbon footprint.