Proximar signs Japan's first 'blue-sustainability loan', JPY 8.8 billion (~ NOK 680 million), led by Mizuho Bank Ltd, The Shizuoka Bank, and Development Bank of Japan
Proximar is pleased to announce that it has signed Japan’s first “blue-sustainability loan”. The corporate loan of JPY 8.8 billion (~ NOK 680 million) is issued by a syndicate of the three leading Japanese banks; Mizuho Bank Ltd, The Shizuoka Bank and Development Bank of Japan.
“Signing this blue sustainability loan in Japan proves our strong commitment to sustainable fisheries, salmon farming and food supply, in addition to bringing us to our ~45 percent debt ratio target at attractive terms,” says Joachim Nielsen, CEO of Proximar Seafood.
The proceeds of the loan will be used to fund the development of Proximar’s land-based recirculating aquaculture system for Atlantic salmon. The loan will be structured in two disbursements, where the first disbursement will be executed in April, and the second will come at the time of take-over of the post-smolt grow-out building in the third quarter of 2023.
Mizuho Bank, Ltd. (“Mizuho”) has been mandated as an arranger of the syndicated loan agreement which is issued by Mizuho, The Shizuoka Bank, and Development Bank of Japan, at an interest rate below 5 percent.
“At Mizuho, we are strengthening our initiatives toward realizing a sustainable society, including responding to climate change and the transition to a low-carbon society, and we highly evaluate Proximar’s contribution and approach to the marine conservation. We therefore proposed to financially support their project through the use of a blue-sustainability loan”, states Mizuho Bank in a press release.
Blue-sustainability loans specifically address Goal 14 (“Life below water”) of the United Nations Sustainability Development Goals to fund projects which promote marine conservation and sustainable fisheries. Proximar has established its Blue-Sustainability Finance Framework by complying with the Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, Green Loan Principles, Social Loan Principles, Green Bond Guidelines, Social Bond Guidelines, Green Loan Guidelines, Blue Finance Guideline issued by the International Finance Corporation, and Sustainable Blue Economy Principles issued by the United Nations Environment Programme Finance Initiative (collectively, the “Principles and Guidelines”).
