Iceland Seafood International hf: Refinancing completed
Iceland Seafood International hf. (“ISI hf.”) announces the successful conclusion of its refinancing, significantly strengthening the company’s financial position through debt restructuring, interest rate reduction, and enhanced liquidity.
In April 2025, ISI hf. completed a primary refinancing with the issuance of the ICESEA 28 10 bond, with a maturity of 3.5 years. This transaction reduced short-term debt by EUR 27.6 million, with a corresponding increase in long-term debt. The effective interest rate is now approximately 5.2%, considering currency swap agreements based on current exchange and Euribor rates. The previous bond, ICESEA 25 06, which carried a 13% flat interest rate, including 7.35% following a covenant breach after the sale of Iceland Seafood UK in autumn 2023, was repaid on June 23rd, 2025. The new terms are expected to result in a substantial reduction in the company’s interest expenses.
The refinancing of foreign bank loans has also reduced credit margins by 0.5–1.0 percentage points. The Group’s loan structure has been simplified, contributing to improved oversight and operational efficiency.
Commercial papers issued in April and June as part of the refinancing, totaling ISK 2.7 billion, with flat interest rates ranging from 8.5–8.7% (a 71 to 72 basis point spread over 6-month Euribor), have been converted into euros through currency swap agreements and have a maturity of 6 months.
Following this refinancing, ISI hf.’s long-term debt now stands at approximately EUR 35 million. The share of long-term debt has increased, and a better balance has been achieved between long- and short-term liabilities, strengthening the company’s financial position and increasing strategic flexibility.
CEO Ægir Páll Friðbertsson commented:
“I’m pleased that our refinancing has been completed. By replacing the previous bond with a new 3.5-year bond, simplifying our debt structure, and lowering our interest burden, we’ve established a solid foundation for continued healthy operations and future growth. With interest rates declining and a balanced debt portfolio, we are in a strong position to maintain financial stability and deliver on our operational goals.”
