Financing completed for Samherji's new land-based farm

Around 100 people will work in Aquaculture Park, and the majority of them will be knowledge-based jobs, where there will be a strong emphasis on automation at the facility. Samherji Fish Farming ehf., a subsidiary of Samherji hf., has completed the financing of the first phase of Eldisgarður, a new land-based farm at the Reykjanes Power Plant, with the issuance of new share capital and a syndicated loan. Financing for the first phase amounts to EUR 235 million, equivalent to ISK 34 billion. One hundred new jobs will be created at the station and another equal number of derived jobs. "It is very gratifying that the financing of the new land-based farm, Eldisgarður, has been secured. Domestic and international banks and investors have shown a great deal of confidence in us by their participation. We set ourselves a clear goal right from the start to get external investors for this project and it has now been achieved. We expect land-based farming in Iceland to bring significant prosperity to the national economy, just as the Icelandic fishing industry has done in recent decades," says Þorsteinn Már Baldvinsson, CEO of Samherji and Chairman of the Board of Directors of Samherji Aquaculture. Good results in Öxarfjörður were crucial "Aquaculture is based on our experience of land-based farming in Öxarfjörður. Since 2023, we have invested in the station in Öxarfjörður for just over ISK four billion. That investment consisted of the expansion and implementation of new technology that will be used in Aquaculture Park. The results of these changes have not been long in coming, and strengthen our expectations for the operation of the new land-based farm. A strong team has worked for a long time on the preparation of this large and financially intensive project and laid the foundation for the development of top-class land-based aquaculture on a global scale. I am extremely proud of Samherji's employees at this juncture and we believe we are well equipped to take on a much larger land-based farm," says Þorsteinn Már. The station is built in three phases Groundwork at Eldisgarður began in October 2024. The land-based fish farm will be located in HS Orka's resource park at the Reykjanes Power Plant with access to 100% renewable energy from the plant. The station will be built in three phases. After the first phase, it will produce 10,000 tonnes of gutted salmon and when fully built, it will reach a production capacity of 30,000 tonnes per year. The production will also include by-products that are intended to be used for further value creation within HS Orka's resource park. Great interest in participating in the project The financing of the first phase of Aquaculture Park is twofold. On the one hand, it consists of the issuance of new share capital in Samherji Fish Farming ehf. of EUR 125 million and a syndicated loan of EUR 110 million. Samherji hf., which currently owns 99% of the shares in Samherji aquaculture, will contribute about half of the share capital increase in return for investment from a group of investors. This is AF3 slhf. (a private equity fund managed by Alfa Framtak ehf.), CCap (a Dutch investment company owned by a family) and Snæból ehf. (an Icelandic investment company owned by a family). A syndicated loan of EUR 110 million is managed by Íslandsbanki with the participation of Landsbankinn, Nordea and Eksfin – Eksportfinansiering i Norge. Due to the great interest in the project, it was decided to increase the scope of the share issue and lay the foundation for the next phase in the development of the land-based farm. Both domestic and international investors are participating in this expansion of the issue and it is expected to be completed by the end of May. Íslandsbanki Corporate Finance and Arctic Securities in Oslo acted as advisors to Samherji Aquaculture in the financing process. Based on successful decades of experience in land-based farming Groundwork at Eldisgarður began in October 2024. The land-based fish farm will be located in HS Orka's resource park at the Reykjanes Power Plant. Samherji Fish Farming ehf. has been engaged in land-based farming of Arctic charr and salmon with good results for two decades. The company has become a leader in land-based farming and is today the largest charr producer in the world with about 30% market share in Arctic char. Since 2002, Samherji Aquaculture has produced more than 60,000 gutted tonnes of salmon and Arctic char. In recent years, extensive expansion has been undertaken in the company's current land-based farms, which today have an annual production capacity of 6,000 gutted tonnes. The farm has been under development since 2020 and the station was designed with the goal of simplifying operations and equipment at the facility while using proven and reliable technology. Operational efficiency will be at the core of the station's operations, with responsible energy utilisation and energy saving as guiding principles. The farm will utilise geothermal seawater and so-called warm seawater, which is waste from the cooling of the Reykjanes Power Plant, which today flows partly unused into the sea. Around 100 people will work in the farm, and the majority of them will be knowledge-based jobs, where there will be a strong emphasis on automation in the facility, in addition to the support of the 120 employees and specialists who currently work at Samherji Aquaculture. The farm will consist of a juvenile facility, a rearing building with three rearing facilities and a slaughterhouse. Value creation through environmentally friendly production "I am very proud of our employees who have made this success possible with their experience and expertise. At the same time, I am moved by the interest that investors are showing in Aquaculture Park. This is a huge project that will have a positive impact on the local community in Reykjanes. We are proud to create new knowledge-based jobs in the area through environmentally friendly production of high-quality protein," says Jón Kjartan Jónsson, Managing Director of Samherji Aquaculture. "Land-based farming is growing rapidly and is becoming an important industry for the Icelandic economy. By utilizing renewable energy sources and building on decades of experience in the fishing industry, the industry is in a strong position for growth. At Alfa Framtak, we are proud to support the development of this important industry in Iceland, and by investing in Samherji Fish Farming, we benefit from the company's well-established knowledge and experience of fishing, processing and aquaculture. We are very pleased to invest in this project and we look forward to working closely with the management and other shareholders of Samherji Fish Farming," says Gunnar Páll Tryggvason, Managing Director of Alfa Framtak ehf. CCap in the Netherlands, which now joins Samherji's shareholder group, has previously worked with Samherji on diverse projects. "We have worked with Samherji's management for many years in the field of fishing and fish processing around the world. Aquaculture is an exciting opportunity to expand that collaboration and we are taking part in this great development with great anticipation," say Jan van der Plas and Anton van der Plas, founders of CCap. "It is an honour for Íslandsbanki to lead the financing of Aquaculture Park for Samherji Aquaculture. With the syndicated loan and the share capital increase from trusted partners, a strong foundation has been laid for this ambitious project. This is in line with the Bank's strategy of supporting long-term value creation in the Icelandic business sector," says Jón Guðni Ómarsson, CEO of Íslandsbanki. The station is expected to be commissioned in the first quarter of 2027.