Mowi has issued NOK 3.5 billion (USD 318.6 million, EUR 297.1 million) in new senior unsecured green bonds, with the placement split between two tranches.
On 25 April, the Bergen, Norway-headquartered salmon company announced via the Euronext Oslo stock exchange confirmed the green bond structure comprised one tranche of NOK 2.5 billion (USD 227.6 million, EUR 212.2 million), which carries a tenor of five years and a coupon of three-month Nibor+1.13 percent margin per annum. The other tranche carries an additional NOK 1 billion (USD 91 million, EUR 84.9 million) with a tenor of eight years and a fixed coupon of three-month Nibor+1.5 percent margin per annum.
Mowi said the entire issue amount and coupons will be swapped into floating currency and that the transaction was “well oversubscribed.” The company will use proceeds from the green bond issues for green projects as further defined by Mowi's green and sustainability-linked financing framework, which it developed in May 2023, it said.
The settlement date is set at 3 May for both tranches, and the Mowi will submit an application for the bonds to be listed on the Euronext Oslo Exchange.
Meanwhile, the Hordaland District Court has rejected Mowi’s lawsuit against Norway’s new aquaculture resource tax, with the company and its main owner, John Fredriksen, claiming the tax breached the constitution and rules for the European Economic Area (EEA).
Norwegian Government Attorney Fredrik Sejersted said that in the state's view, the district court had come to the correct result in that the lawsuit from Mowi must be dismissed, according to E24.
Sejersted said the case will be temporarily halted until Mowi decided whether it wishes to file an appeal after it has received a concrete tax ruling.
Mowi said it will study the decision before deciding on its next step.
Under the new resource tax plan, Norwegian salmon farmers have to pay a basic rent tax of 25 percent on the profit from their sea-based farming activities. This is in addition to a 22 percent corporation tax. However, the resource tax is only applicable when a company’s profits exceed NOK 70 million (USD 6.4 million, EUR 5.9 million).
Mowi objected to different rules applying to large and small producers, with CEO Ivan Vindheim testifying that as the industry’s largest player, his company would be heavily impacted by the distorting effects of competition.
Vindheim previously said the resource tax would case “irreparable damage” to Mowi and Norway's salmon industry. However, Mowi still managed to post EUR 1 billion (USD 1.1 billion) in earnings before interest and taxes (EBIT) and EUR 5.5 billion (USD 5.9 billion) in revenue in 2023.
