Iceland Seafood's Successful Funding Refinancing Efforts
Overview of Successful Refinancing at Iceland Seafood International
Iceland Seafood International hf. ("ISI hf.") has recently completed a successful refinancing process aimed at enhancing its financial position for 2025. This endeavor has significantly strengthened the company's financial stability, enabling them to restructure debts, reduce interest expenses, and improve liquidity.
Details of the Refinancing Process
In April 2025, ISI hf. finalized an extensive refinancing initiative by issuing the bond ICESEA 28 10 for a period of 3.5 years. This bond issuance successfully reduced short-term debts by €27.6 million, while long-term debts increased by the same amount. The current interest rate stands at approximately 5.2%, specifically considering currency swap agreements in line with prevailing exchange rates and Euribor rates.
Prior Debt Management
The previous bond, ICESEA 25 06, which had a flat interest rate of 13%, including 7.35% post-amendment following the divestment of Iceland Seafood UK in late 2023, was fully paid off on June 23, 2025. This refinancing move promises a substantial decrease in the company's interest costs.
Impact on Financial Flexibility
The refinancing of foreign bank loans has resulted in an interest margin reduction of between 0.5 and 1.0 percentage points. Furthermore, the composition of the group's loans has been streamlined, facilitating better oversight and more efficient operations.
New Issued Bills and Cash Management
New bills issued in April and June as part of the refinancing process total 2.7 billion ISK, featuring fixed interest rates ranging between 8.5% and 8.7% (71 to 72 basis points above the 6-month Reibor). These bills have been swapped to euros through currency agreements, maturing in 6 months.
Long-term Debt and Future Strategy
Following this refinancing, ISI hf's long-term debts now amount to approximately €35 million. The share of long-term debt has increased, achieving a balance between long-term and short-term obligations, which strengthens the company's financial standing and enhances strategic flexibility.
CEO's Insights on the Refinancing
The CEO of ISI hf, Ægir Páll Friðbertsson, expressed satisfaction with the completion of the refinancing for 2025, stating, "I am pleased that our refinancing is now complete. By issuing a new bond for 3.5 years, simplifying our debt structure, and reducing costs, we have laid a robust foundation for continued healthy operations and room for growth. With decreasing interest rates and a balanced debt portfolio, we are in a strong position to maintain financial stability and pursue our operational goals."
Frequently Asked Questions
What does the recent refinancing by ISI hf. entail?
ISI hf. completed a refinancing process that improved debt structure and reduced interest costs significantly.
How much debt was restructured during the refinancing?
Short-term debts were reduced by €27.6 million, while long-term debts were adjusted by the same amount during the refinancing.
What are the new interest rates following the refinancing?
The new effective interest rate stands at approximately 5.2%, taking into account currency swap agreements.
How does this refinancing affect Iceland Seafood's operations?
This refinancing enhances financial stability and provides ISI hf. with strategic flexibility for future growth.
Who is the CEO of Iceland Seafood International hf.?
The current CEO is Ægir Páll Friðbertsson, who expressed optimism regarding the company's financial outlook post-refinancing.
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