Eksfin has provided the seafood industry with NOK 12 billion in financing

Today, the state-of-the-art fishing trawler “Akraberg” is being christened. Delivered yesterday to the fishing company Framherji, “Akraberg” was built at the Vard Brattvåg shipyard in Ålesund and financed by Eksfin and Nordea. Since 2015, Eksfin has contributed NOK 12 billion in loans and guarantees to the seafood industry

In recent years, Eksfin (Export Finance Norway) has experienced strong growth in the demand for loans and guarantees for the seafood industry. Eksfin, which is a government supplement to private funding, is impressed by the growth of the Norwegian aquaculture industry, especially thanks to innovation and technological development.

Norway’s export industries, including fisheries and aquaculture, need major technological and financial boosts. This means that the industry, the banks and the state must work as a team. Going forward, we still expect to see growth in loans and guarantees for this important export industry. Tone Lunde Bakker, managing director of Eksfin.

A good example is the company Ava Ocean in Ålesund, which has taken over an offshore ship that is to be converted into a scallop harvester. While dredge fishing has been banned in Norway for more than 30 years, Ava Ocean has now developed a nonabrasive and efficient technology for sustainable precision harvesting of Iceland Scallops, a delicacy reminiscent of Great Scallops.

Eksfin provides loans and coverage of credit risk in this project and is helping to drive the renewal of the entire seafood industry fleet.

Read: Offshore ships are converted into innovative scallop harvesters

Industry in Møre and Romsdal is the largest consumer of Eksfin’s services

In the period 2015 to 2021, the fisheries and aquaculture industry has been the recipient of NOK 12 billion worth of guarantees and loans.

The graph shows a rapid expansion of Eksfin’s loans and guarantees to the industry since 2015, which spiked in the years after 2019.

Industry in Møre and Romsdal is the largest consumer of Eksfin’s schemes. The newest project is the state-of-the-art fishing trawler “Akraberg”, which was delivered from Sunnmøre and Vard Brattvåg on 30 June. Eksfin has provided long-term financing to the Faroese shipping company Framherji in the amount of 312 million Danish kroner, and the loan has been partially repaid during the construction period up to completion. The loan is a collaboration between Eksfin and Nordea’s seafood department in Ålesund, and the entire amount is guaranteed by Nordea.

With Eksfin on the team, we received good financing conditions when “Akraberg” was to be built.

Annfinn Olsen, CEO, Framherji

On time and on budget

The fishing trawler has a hybrid propulsion system consisting of a battery pack and diesel-electric propulsion. Vard emphasises that the vessel is designed to meet high requirements for fish health, efficiency and environmentally friendly operation. There will also be a factory on board capable of handling the residual waste from production, which will, among other things, go to the production of feed for the aquaculture industry in the Faroe Islands.

While a number of shipyards in Europe struggle with significant delays in their new construction projects due to challenges linked to Covid-19 and war in Europe, Vard has delivered the new “Akraberg” on time and on budget. It is quite simply very impressive.

Stig Gjethammer, account manager, Eksfin

Framherji, which owns the new trawler, is among the four largest actors in the Faroe Islands. The trawler will mainly fish in the Barents Sea and off Svalbard.

Will promote higher exports

An important contribution to the increase in loan guarantees for the aquaculture industry is the “internationalisation guarantee” product which was introduced in 2017. Eksfin can guarantee loans for investments in Norway that can lead to higher exports in the future. From this year, Eksfin can also co-ordinate internationalisation loans with internationalisation guarantees provided the investment directly or indirectly leads to exports. For example, such a guarantee is given when Salmon Evolution builds its first land-based salmon farming facility at Indre Harøy in Møre and Romsdal. Nordea and Sparebanken Vest are providing construction loans of up to NOK 525 million, with Export Finance Norway (Eksfin) guaranteeing 50 per cent of the construction loan.