Samherji completes financing for new land-based salmon farming project in Reykjanes
Samherji Fish Farming, a subsidiary of Samherji hf., has completed financing of the first phase of the Salmon Garden, a new land-based fish farming facility on the Reykjanes Peninsula in Iceland. The funding, secured through an equity private placement and a syndicated loan, totals EUR 235 million. Once fully scaled, the facility will directly create 100 new jobs, with a similar number of indirect jobs expected through associated services and industries.
“We are very pleased that the financing for the Salmon Garden has been finalised. The strong participation from domestic and international banks and investors reflects their confidence in the project. From the outset, we set a clear goal of bringing external investors on board, which has now been successfully achieved. We expect land-based fish farming to bring significant value creation to the Icelandic economy, just as the fisheries industry has done for decades,” says Thorsteinn Már Baldvinsson, CEO of Samherji and Chairman of Samherji Fish Farming.
Building on experience from Öxarfjördur
“The Salmon Garden is based on our experience from Öxarfjördur in North-East Iceland. Since 2023, we have invested EUR 30 million in expanding the site with several pilots, testing new technologies that will be applied in the Salmon Garden. The operational performance has been impressive, validating our expectations for the new site. A dedicated team has worked meticulously over an extended period to prepare for this large-scale, high-investment project, laying the groundwork for an industry-leading facility. At this important milestone, I am extremely proud of our team, and we consider ourselves well-prepared for a significantly larger operation,” says Baldvinsson.
Groundworks for the Salmon Garden began in October 2024. The facility is located on Reykjanes in HS Orka’s Resource Park, with access to 100% renewable energy from the adjacent geothermal power plant. The facility will be built in three phases, producing approximately 10,000 tonnes of head-on gutted (HOG) salmon annually after the first phase, and reaching a total capacity of 30,000 tonnes per year once fully operational. The production will also generate by-products for further value creation within the Resource Park.
Interest from reputable investors
The financing of the first phase comprises two components: the equity private placement of EUR 125 million and a syndicated loan of EUR 110 million. Samherji hf., which owns 99% of the shares in Samherji Fish Farming, will contribute approximately half of the equity capital raise. The remaining equity capital will be invested by a group of investors led by AF3 slhf., (an Icelandic private equity fund managed by Alfa Framtak ehf.), CCap (a Dutch family-owned investment company), and Snaebol ehf. (an Icelandic family-owned investment company). The syndicated loan is led by Íslandsbanki, with participation from Landsbankinn, Nordea and Eksfin – Eksportfinansiering in Norway.
Due to significant interest in the transaction, Samherji has decided to upsize the equity round in order to expedite construction of the next phase of the project. Several domestic and international investors are actively engaged in the upsizing, which is planned to close before summer.
Arctic Securities and Íslandsbanki Corporate Finance act as joint financial advisors to Samherji Fish Farming on the financing.
Decades of land-based fish farming competence
Samherji Fish Farming has successfully farmed Arctic char and salmon for over two decades. The company has grown into an industry leader in land-based aquaculture and is currently the world’s largest producer of Arctic char, supplying 30% of the total market. Since 2002, the company has produced more than 60,000 tonnes of HOG salmon and Arctic char products. Existing facilities have been significantly upgraded over the last five years and have a current production capacity of 6,000 tonnes HOG.
The Salmon Garden project has been in development since 2020 and was designed with the goal of reducing operational complexity and relying exclusively on proven, reliable technologies. Resource efficiency is also at the core, with low expected energy consumption and utilisation of seawater and warm heat exchanged seawater from the powerplant, part of which currently flows unused to sea.
The project will create around 100 jobs, primarily in knowledge-based roles, with strong support from Samherji Fish Farming’s existing organization of approximately 120 employees. The facility will include a freshwater RAS hatchery, an on-growing section with three on-growing stages and a harvesting facility.
Value creation through environmentally friendly production
“I am proud of our employees who have made this achievement possible with their experience and expertise. At the same time, I am humbled by the interest shown in the Salmon Garden by various reputable investors. This is a project on a massive scale that will positively impact the local community in Reykjanes. We are proud to create new jobs alongside increased value creation through environmentally friendly production of high-quality protein,” says Jón Kjartan Jónsson, Managing Director of Samherji Fish Farming.
“Land‑based aquaculture is rapidly emerging as an important industry for Iceland’s economy. By harnessing abundant renewable energy and building on decades of expertise in fisheries, our industry is well‑positioned for sustainable growth. At Alfa Framtak, we’re proud to help establish this vital new sector. By investing in Samherji Fish Farming, we benefit from Samherji’s deep heritage in commercial fishing and fish farming. We’re pleased to invest in this project and look forward to collaborating closely with management and our fellow shareholders as we bring it to fruition”, says Gunnar Páll Tryggvason CEO of Alfa Framtak.
CCap in the Netherlands, which is now joining as a shareholder of Samherji Fish Farming, has previously worked with Samherji on various projects.
“We have worked with Samherji’s management for many years in global seafood operations. The Salmon Garden is an exciting opportunity to expand that collaboration, and we are thrilled to be part of this major development,” say Jan van der Plas and Anton van der Plas, founding partners of CCap.
“Íslandsbanki is honoured to be entrusted to lead the financing of the Salmon Garden project. With the syndicated loan and the capital increase from trusted partners, a solid foundation has been laid for this ambitious project. It aligns well with the bank’s strategy of supporting long-term value creation in the Icelandic economy,” says Jón Gudni Ómarsson, CEO of Íslandsbanki.
The facility is scheduled to begin operations in the first quarter of 2027.
Learn more about the Salmon Garden project in the video below.
