Andfjord Salmon issues £101m bond to fund debt and next build-out
Land-based salmon farmer Andfjord Salmon Group has successfully completed a senior secured bond issue of NOK 1.25 billion (£101 million), it announced today.
The bond carries an interest rate of an average of three months NIBOR (Norwegian Inter Bank Offered Rate) plus 8.50%.
The net proceeds from the bond issue will be used to repay a previous bond issue and fund completion of phase 2A of Andfjord Salmon’s flow-through facility at Kvalnes of the island of Andøya, northern Norway.
Phase 2A comprises four pools, K5 to K8, that will form part of a 12-pool block on the site. In a presentation of its results for the second quarter of 2026, Andfjord Salmon put the capital cost of phase 2A at circa NOK 1.38bn.
Three pools in use
Andfjord currently operates three pools – K0, which is on another part of the site, plus K1 and K3. Pools K2 and K4 are due to be brought into use soon, taking annual production capacity to 11,000 tonnes (head on gutted fish and post-smolts).
Pools K5-K8 will add room for another 6,000 tonnes per year, taking annual production capacity to 17,000 tonnes. Phase 2B, comprising pools K9-K12 and costed at approximately NOK 500m, will add a further 6,700 tonnes of annual production capacity, taking it to 23,700 tonnes.
Andfjord hopes to secure an increased biomass allowance for the completed pools, which would increase annual production capacity by a further 5,100 tonnes without any extra capital cost.
Two further pool construction phases are planned to take annual production capacity to 48,100 tonnes. These phases would have a combined capital cost of NOK 1.46bn.
As of June 30 this year, a total of approximately NOK 3.465bn had been invested at the Kvalnes site up to phase 2A.
