Lerøy Seafood Group Plans Green Bond Issuance to Finance Sustainable Projects
News related to:Lerøy Seafood Group ASA · 2 min read
Lerøy Seafood Group ASA, a Norwegian seafood company rated BBB/Stable by Nordic Credit Rating, has taken a significant step towards sustainable financing by announcing its intention to issue green bonds. The company has chosen Danske Bank and DNB Carnegie as joint bookrunners to explore the potential issuance of NOK 750 million in senior unsecured green bonds.
According to Sjur Malm, Chief Financial Officer of Lerøy Seafood Group ASA, the bonds, which could be either fixed or floating rate, are expected to have a tenor of six years. The net proceeds from the bond issue will be directed towards financing or refinancing green projects, as outlined in the company’s Green Finance Framework.
"This move underscores Lerøy Seafood Group's commitment to sustainability and aligns with our broader strategy to incorporate environmental considerations into our financial planning and operations," said Malm. "By exploring this financing avenue, we aim to support our ongoing initiatives in eco-friendly practices and contribute to the broader goals of reducing carbon emissions and promoting sustainable seafood."
The announcement comes as many companies in the seafood industry are increasingly focusing on sustainability. Lerøy Seafood Group, which operates in the Norwegian Sea and is known for its sustainable practices, sees this as an opportunity to enhance its environmental credentials while also accessing long-term, cost-effective financing.
The company’s initiative is part of a growing trend among businesses globally to utilize green financing instruments. By issuing green bonds, Lerøy Seafood Group ASA aims to diversify its financing options and support its long-term sustainability goals, while also attracting investors who are increasingly focused on environmental, social, and governance (ESG) factors.
In the coming months, the company will closely monitor market conditions to determine the optimal timing for the bond issuance. The Green Finance Framework, which will define the specific projects eligible for funding, is currently being developed and will provide further details on the company’s sustainability initiatives.
Lerøy Seafood Group ASA’s commitment to sustainability is evident in its operations, which focus on responsible fishing practices and the protection of marine ecosystems. By leveraging green bonds, the company aims to further reinforce its position as a leader in sustainable seafood production and conservation efforts.