PROXIMAR SEAFOOD (JAPAN) SECURES LOAN FOR RAS DEVELOPMENT

Proximar Seafood (Japan) secures loan for RAS development. Proximar Seafood AS has announced that the company’s subsidiary Proximar Ltd (Japan) has secured a JPY 2.5 billion (approx. NOK 190 million) loan facility distributable in two equal parts, with the former to be distributed shortly and the latter part to be distributed in February 2022. The loan will ensure further financing of the development and construction of Proximar Seafood’s large-scale RAS production facility at the foot of Mount Fuji in Japan.

The loan facility is provided by the Japanese financing institution JA Mitsui Leasing Ltd. (JAML). The loan from JAML carries an interest rate on Japanese market terms. The construction of Proximar Seafood’s RAS production facility started in Oyama, Japan, Q1 2021, and the first Atlantic salmon is scheduled for harvesting in 2024.

The loan from JAML is guaranteed by Grieg Kapital. For their role as guarantor, Grieg Kapital is compensated according to market terms. Proximar Seafood AS will further provide a customary share pledge over its shares in the Japanese subsidiary as collateral for any recourse requirements from the primary guarantor. Grieg Kapital is syndicating the loan guarantee by holding counter guarantees from other shareholders in Proximar Seafood AS, with the first part of the loan already fully guaranteed.

“The loan agreement with JA Mitsui Leasing is a significant breakthrough for Proximar Seafood and represents an important step forward in the project financing process. We have been in close talks with JAML since 2019 and appreciate the progress we have had over the last years. We are now very pleased to secure our first loan facility with JAML and bring our relationship on to the next level. The credit facility has favorable terms and provides us with good financial headroom to mid-2022 and allows us time to negotiate a sales agreement with Marubeni Corporation, which is important when it comes to long term Japanese bank financing,” says Proximar Seafood’s CEO, Joachim Nielsen.

The General Manager of the MBK Business Promotion Department at JA Mitsui Leasing Ltd, Hideki Kobayashi, says: “We are very excited to be the first Japanese financial institution to finance Japan’s first large-scale land-based aquaculture project, and we look forward to its success”. The loan is a part of Proximar Seafood’s construction financing. Proximar is experiencing positive progress for long-term bank financing in Japan, although the progress has been hampered by the COVID-19 travel restrictions as previously communicated.

The loan from JA Mitsui Leasing, having a term of 18 months, provides flexibility and time to conclude the ongoing financing discussions. Proximar is still discussing long-term debt with Japanese banks as well as further construction loan financing. The target debt rate remains at approximately 50 % of the total project.

“I am really pleased that the progress in the development of the Mt. Fuji facility is according to time schedule and budget. The technology has demonstrated its functionality, including breeding of Atlantic salmon for close to 5 years in Poland, which we follow closely. The system maintains good water quality and growth conditions for the salmon. I am therefore confident in Proximar Seafood’s ability to deliver quality Atlantic salmon to the growing Japanese market in a little more than two years’ time. We are also very encouraged by the strong interest for the project in Japan, which is truly inspiring,” says Joachim Nielsen, CEO of Proximar Seafood.

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