NORWAY TO EXPORT FISH FARMING EQUIPMENT TO IRELAND
Norway to export fish farming equipment to an organic salmon farm in Ireland. Export Credit Norway has financed the sale of Norwegian fish farming equipment to fish farming company Bradán Beo Teoranta.
The Irish fish farming company has entered into agreements to acquire equipment from Norwegian companies. The deliveries are a feed barge from AKVA Group and cage nets from Mørenot Aquaculture.
The equipment will be utilised at the Irish company’s salmon farm in Kilkieran Bay on the west coast of Ireland. Export Credit Norway has financed the sales through a loan to Bradán Beo Teoranta.
Export Credit Norway is a government-owned company that provides loan financing to companies that acquires goods and services from Norwegian exporters.
“Our job is to help Norwegian companies succeed abroad, and we are delighted to provide financing for export of fish farming equipment to Ireland. Through offering competitive export financing, we can help make Norwegian companies’ more competitive when they bid for contracts abroad, says Kaare Haahjem, Export Credit Norway’s responsible for fisheries and fish farming.
The customer, Bradán Beo Teoranta is a company that started farming Irish organic salmon a few years ago. Today, the company produces between 2,500 and 3,000 tonnes per year.
Liam Roche in Bradán Beo Teoranta explains that the company have acquired equipment from Norwegian suppliers before, but then without the support of export financing.
“It was the head of AKVA Group’s UK operation that presented export financing as an alternative to us. As Export Credit Norway can offer favourable terms, it helped us realise our projects. We have several projects in the pipeline and we would definitely consider using export financing again,” says Roche.
First export finance deal to Ireland
This is the first time that Export Credit Norway has financed a project in Ireland.
“We have previously visited the country and held discussions about financing fishing vessels, but not specifically for fish farming. However, we are very pleased that AKVA Group introduced Bradán Beo Teoranta to export financing. Today, we are in dialogue with several Irish companies about various projects, so it looks like Bradán Beo Teoranta has helped open other Irish companies’ eyes to export financing,” says Haahjem.
Export Credit Norway’s loan to Bradán Beo Teoranta has 4.5 year maturity. GIEK is guarantor for 90% of the loan, with Bank of Ireland for the remaining 10%.
“For AkvaGroup it is actually the company’s Scottish business that has sold and delivered the feed barge, but given that Norwegian content accounts for minimum 30 percent of the total supplier contract, the project qualifies for financing from Export Credit Norway. We encourage other non-Norway based companies to explore this type of project financing,” says Kaare Haahjem, Export Credit Norway’s responsible for fisheries and fish farming.