Long-term unsecured funding.
Iceland Seafood International (ISI) has concluded a private placement of four years unsecured bond.
The total amount of the placement is EUR 23.1 million at a fixed rate of 5.65 per-cent.
The bond has semiannually interest payments and the balance will be paid in one installment on the 21st of June 2025. The bond is scheduled to be admitted to trading on Nasdaq Iceland in the coming weeks, the company wrote on Friday.
The Icelandic seafood company has been on a shopping spree in the past few years, acquiring salmon businesses such as Ireland’s Carrs & Sons and Oceanpath (the country’s largest fresh seafood processor) last year. It signed a letter to acquire 80 per-cent of the Spanish smoker Ahumados Dominguez in May.
“An important step was taken with the issuance of six months bills, which started in September 2019. This bond issuance is another important step where the company has secured a long-term unsecured funding which will support Iceland Seafood’s growth plans and positively impact the company’s cost of capital,” wrote ISI.
Arion bank advised the company on the matter.
“The issue marks a milestone for the Icelandic capital market as it is the first unsecured corporate bond issue in many years. The bank is confident that Iceland Seafood’s relationship with the Icelandic capital market will continue to grow stronger and more companies will follow suit, leading to more diverse corporate debt market,” the Icelandic seafood company concluded.