Proximar secures full financing for Japan project

Proximar Seafood has secured loan finance totalling 8.8bn Japanese yen (£55m) for its land-based salmon farming project, which is under construction near Tokyo.

The loan offer for Proximar Seafood AS, through its subsidiary Proximar Ltd. (Japan), comes from a syndicate consisting of two large Japanese banks. The loan is the equivalent of NOK 680m.

Subject to final approval, the loan facility means that Proximar will have secured complete debt financing for its RAS (recirculating aquaculture systems) farm at Oyama, situated below the slopes of Japan’s iconic Mount Fuji.

Proximar CEO Joachim Nielsen said: “We are delighted to finally see the entire debt financing now coming in place for our stage 1 facility.

“Proximar has evaluated multiple debt financing alternatives over the last two years and the offer represents the company’s preferred option for debt financing in line with our targeted debt ratio.”

He added: “To obtain a complete debt solution for both the construction and operating phases at attractive terms, marks a breakthrough for the company.”

Proximar said a “Highly Confident Letter” is typically issued in Japan after a substantial part of the due diligence is completed and at the time when the execution risk is assumed to be minimal. The loan offer also implies that Proximar will reach its 45% debt ratio ambition.

Last month, Proximar Seafood announced that the first batch of Atlantic salmon juveniles have started to take feed at Oyama. The construction work of the post-smolt grow-out building is progressing as scheduled

The transfer of Proximar’s first generation fish to the start feeding department marked a milestone for the production team, after the first eggs were successfully inserted in the farm’s hatchery.

Proximar said yesterday it expects new batches to arrive monthly, enabling continuous harvest from the middle of 2024.

Joachim Nielsen