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Marine Science



Brim issues green and blue bonds. Icelandic fishing and processing company Brim, in collaboration with Íslandsbanki, has completed the issuance of bonds that fall within the company’s sustainable financing framework and are identified with the colours green and blue. By issuing the bonds, Brim finances projects that promote sustainability and have a positive impact on the environment, with blue bonds regarding projects related to the sea and water. The bonds are the first of their kind to be issued by Brim and also the first in Iceland to fall under the blue and green financing framework.

The bonds sold are in the series BRIM 221026 GB, are non-indexed and have a final maturity date of 22 October 2026. The bonds carry 4.67% interest, which is paid quarterly, but the principal of the bonds is paid in one payment on the final maturity date. The total size of the bond series is a total of ISK 5,000 million nominal value, but now bonds with a nominal value of ISK 2,500 million have been issued. The bond was sold at par value, or at a yield of 4.75%. Concurrently, the company has entered into a currency and interest rate swap agreement to meet the cash flow of the bonds, and taking into account that agreement, the company’s interest costs will amount to 1.8% fixed interest in euros for the lifetime of the bond.

With a sustainable financing framework, bond buyers can rely on their investments to go to projects that promote sustainability and have a positive impact on the environment. Thus, investments are made in projects that e.g. reduce greenhouse gas emissions, reduce pollution and promote more environmentally friendly modes of transport. In the fisheries sector, there is the electrification of ports, energy switching, sewerage and other issues that contribute to the health of the sea and the environment. Among the projects covered by Brim’s funding framework are the company’s waste sorting stations, where everything generated in the operations at sea and on land is sorted; the development of an environmental database with the aim of having an overview of emissions and where they occur in the operations; and renewal of equipment that increases the utilisation of raw materials and reduces environmental impact.

In recent years, Brim has invested in sustainability projects and systematically reduced the environmental impact of its operations. For years, sustainability and environmental issues have played an important role in the company’s operations, and the company has annually reported on the non-financial aspects of its operations in accordance with the Global Reporting Initiative GRI100-400 and Nasdaq’s UFS guidelines. Brim was awarded the SA Environmental Award in October 2019.

Climate issues are one of the main challenges of our time, and we all need to respond,” says Guðmundur Kristjánsson, CEO of Brim. “The key to success is a large increase in investment in innovation and development of projects in the field of environment and climate change. That is why it is important to mobilise the financial market for co-operation with us and to establish a professional procedure that ensures that sustainability is a guiding principle in the assessment of our investments.”

Íslandsbanki oversaw the issuance of the bonds. The second opinion provider of Brim’s sustainable financing framework is the international consulting firm Sustainalytics, which is owned by Morningstar in the UK. CIRCULAR Solutions, now KPMG’s sustainability consultancy, provided consultation on setting up the financing framework. Further information on the financing framework and the opinion of Sustainalytics can be found on Brim’s website, https://www.brim.is/brim/english/brim/investor-relations/sustainability/

The aim is to settle the transaction on next 22 October and to subsequently register the bonds on Nasdaq Iceland hf.

Photo credit: Brim