Bakkafrost negotiates €700m credit facility

Bakkafrost has entered into a €700m (£597m) sustainability-linked multi-currency revolving credit facility.

The Faroese salmon farming group, which has major operations in Scotland, said the purpose of the facility is to refinance its existing bank facilities as well as general corporate purposes – including acquisitions.

It will serve as a robust and flexible financial framework for the group’s investment plans aimed at significant organic growth for the group and structural cost reductions in Scotland, as described at the Capital Markets Day earlier this year.

The company said: “Bakkafrost is pleased by the increased financial flexibility and generally improved terms under the facility.

“The margin payable will be linked to Bakkafrost’s performance against certain sustainability KPIs [key performance indicators], consistent with the group’s overall ESG [environmental, social and governance] targets and ambitions.”

The facility includes flexibility for the parties to agree an additional amount of up to €150m for the facility.

The announcement also said Coöperatieve Rabobank U.A, DNB Bank ASA and Nordea Bank ABPm (Filial i Norge) have agreed to continue their support as lenders.

“These fine institutions are uniquely positioned to support Bakkafrost’s continued development with capital and through their unique combined pool of skills and capabilities,” the announcement added.

The facility is subject to the signing of a facility agreement, which is expected during Q1 2022.

Earlier this year Bakkafrost announced plans to modernise and restructure its Scottish Salmon Company business to the tune of at least £180m over the next three years. It also plans to launch its own air transport export operation.