The Islandic land-based aquaculture facility will produce 36,000 tons of salmon
The issue of new shares in Samherji Fish Farming through equity private placement for financing the Salmon Garden, a new land-based salmon farming facility in Reykjanes, has been increased to USD 239.76 million from USD 142.71 million following strong investor demand. The Salmon Garden of one of the largest companies in the Icelandic fish industry will be built in three phases. When fully built, the land-based aquaculture facility will produce 36,000 tons of liveweight salmon, equivalent to 30,000 head-on gutted (HOG) tons.
Thorsteinn Már Baldvinsson, Chairman of the Board of Directors of Samherji Fish Farming, says the equity private placement is a vote of confidence that comes with great responsibility.
“Just like catching and processing, land-based aquaculture is a capital-intensive, knowledge-driven industry, where value creation depends upon heavy investment. Increased investor interest in this project is a vote of confidence for Samherji Fish Farming and reflects their trust in the Salmon Garden. Accepting funds from investors entails significant responsibility. They assume we will live up to it and fulfil their expectations, which we intend to do. I want to thank the employees of Samherji Fish Farming, as well as our partners and advisors, for their professionalism and a job well done in relation to this project,” said Thorsteinn Már.
Upsizing Completed
According to the information of the company, financing for the first phase of the Salmon Garden was completed at the end of April. It consisted of two components: the equity private placement of USD 142.71 million and a syndicated loan of USD 125.59 million. It was simultaneously announced that the equity round would be upsized due to growing investor interest. The upsizing is now complete, and a subscription agreement has been signed for the issue of new shares totaling USD 239.76 million.
Total financing, including the syndicated loan, amounts to USD 365.34 million, or over ISK 45 billion. Equity placement from shareholders for the first two phases of the Salmon Garden has now been finalized, enabling Samherji Fish Farming to construct the facility faster than previously planned. As a result, the company can immediately begin preparing the design and construction of the second phase of the facility.
In Development since 2020
The Salmon Garden, which has been under development since 2020, will be situated in HS Orka’s Resource Park, adjacent to the Reykjanes Geothermal Power Plant, and will have access to 100% renewable energy from the plant. The facility will include a freshwater RAS hatchery, an on-growing section with three on-growing stages, and a harvesting facility. Groundworks began in October 2024 and are ongoing.
A group of domestic and foreign investors provided the equity capital. The investors are AF3, an Icelandic private equity fund managed by Alfa Framtak; CCap, a Dutch family-owned investment company; Snaebol, an Icelandic family-owned investment company; and six Icelandic pension funds: Almenni Pension Fund, Festa Pension Fund, Gildi Pension Fund, Pension Fund of Commerce, LSR and Stapi Pension Fund.
Arctic Securities and Íslandsbanki Corporate Finance acted as joint financial advisors to Samherji Fish Farming on the financing.
The Facility will Employ 100 People
Approximately 100 people will work at the Salmon Garden, with the majority in knowledge-based roles. The facility will also benefit from the support of the 120 employees and specialists currently employed by Samherji Fish Farming.
Samherji Fish Farming has successfully farmed Arctic char and salmon for over two decades. The company is a leader in land-based aquaculture and is currently the world’s largest producer of Arctic char, with a market share of around 30%.
The company currently produces 6,000 HOG tons of Arctic char and salmon products. The fully built Salmon Garden will therefore multiply the company’s current production capacity. It is estimated that, when fully built and operating at full capacity, the land-based farming facility will generate around USD 342.51 million in annual export revenue.
