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A prominent player in the Norwegian salmon farming sector, SalMar, has successfully raised NOK 4.35 billion (approximately USD 388 million) through the issuance of green bonds. This significant financial move was announced on January 23rd, following a strategic planning process that began earlier in the month. The funds will be directed towards environmentally friendly projects, aligning with the company's commitment to sustainable development. The bond issue comes at a time when the global market for green bonds is rapidly expanding, reflecting growing investor interest in eco-conscious investments.

The journey to this successful issuance began on January 21st when SalMar revealed its intention to launch new green bonds on the Oslo Stock Exchange. To ensure a smooth process, the company enlisted the expertise of several leading financial institutions, including Danske Bank, DNB Markets, Nordea, and SEB as global coordinators, along with Rabobank as a joint lead manager. These entities facilitated an investor meeting on January 22nd to present the opportunity to potential investors.

The bond issuance was structured into two distinct tranches. The first tranche, amounting to NOK 3.25 billion (around USD 290 million), consists of five-year senior unsecured green bonds. The second tranche, totaling NOK 1.1 billion (approximately USD 98 million), comprises seven-year senior unsecured green bonds. Both tranches are set to be listed on the Oslo Stock Exchange, with the settlement date scheduled for January 30th. This dual-tranche approach allows SalMar to diversify its funding sources while catering to different investment horizons.

The rise of green bonds as a preferred method of financing within the aquaculture industry underscores the sector's dedication to environmental stewardship. These bonds, which focus on climate change mitigation and sustainable development, often appeal to investors due to their tax advantages. According to Goldman Sachs, the market for green bonds has surged from an estimated USD 1 trillion in 2021 to a staggering USD 2.5 trillion today. Other major players in the Norwegian salmon farming industry, such as Mowi, have also embraced this trend, issuing NOK 3.5 billion in green bonds just this April.

The successful issuance by SalMar highlights the increasing importance of sustainable finance in the aquaculture sector. By leveraging green bonds, companies can secure capital for environmentally responsible initiatives while addressing investor demand for eco-friendly investments. This marks a pivotal moment for SalMar and the broader industry, signaling a shift towards more sustainable business practices.