Pareto Securities AS
Pareto Securities confirms impressive leadership position in the Nordic High Yield Bond market in Q3 2023

Pareto Securities confirms impressive leadership position in the Nordic High Yield Bond market in Q3 2023

Frankfurt, October 20, 2023. Pareto Securities AS, an international investment bank headquartered in Oslo and a long-standing partner to the mid-market in Scandinavia and Germany, impressively confirms its leading position in the Nordic High Yield (HY) Bond market in Q3 of 2023 – despite all economic uncertainties worldwide.

In the year-to-date Q3 2023, a total of EUR 7.5 billion in Nordic HY bonds were priced. Despite global challenges, the Nordic HY market recorded remarkable year-on-year growth of 75% in Q3 2023, with primary market volumes reaching EUR 2.5 billion (Q3 2022: EUR 1.4 billion). This quarter thus proved to be the second-strongest Q3 ever since 2018. The trend of established German SME bond issuers moving to the Nordic Bond format continued, which underlines the continued attractiveness of this format. The well-reputed German issuer Katjes International opted for the Nordic Bond format, following Nordic Bonds issued by former “Mittelstandsanleihe”-Issuers Hörmann and DEAG earlier this year. All three issuers successfully expanded their existing investor base with international and institutional investors through a combined format of Nordic Bond private placement and public offering. In the overall German mid-sized bond market, including Nordic Bonds from German issuer, around EUR 500 million of bond transaction were placed in the year-to-date, of which 73% relied on the Nordic Bond format.

Pareto Securities impressively underlined its market leadership in the Nordic HY market, despite facing a volatile market environment and has been involved in 51 debt transactions with a total volume of EUR 4.6 billion in the year-to-date. This enabled Pareto to expand its market share to 32% in the overall market and 55% for Euro denominated Nordic HY bonds.

The growing participation of issuers outside the Nordic countries shows the continued attractiveness of the Nordic HY market. Transactions for issuers from non-Nordic countries accounted for around 28% of primary volumes in year-to-date Q3 2023 and around 24% in Q3. Notable non-Nordic activity included a EUR 115 million senior unsecured bond by German confectionery manufacturer Katjes International. Katjes International previously used the “Mittelstandsanleihe” format and now decided to switch to the Nordic Bond format. Pareto acted as joint lead manager in the transaction.

Lutz Weiler, CEO of Pareto Securities Germany, commented in conclusion: “Despite global economic challenges, the Nordic HY market has proven its strength and resilience. At Pareto, we are proud to be at the forefront of this impressive growth. Our consistent performance reflects our deep market knowledge and commitment to our clients.”

To access the newsletter on the Nordic HY Bond market, please follow this link.

About Pareto Securities 
Founded in 1986, Pareto Securities is headquartered in Norway and has offices in Denmark, Finland, Sweden, Germany, the UK, Switzerland, the US, Singapore, and Australia. Pareto Securities has a leading position in the Nordic financial markets and a strong international presence. Pareto Securities offers a wide range of financial services, including equity and fixed income brokerage, equity, debt and project finance, and advisory services related to mergers and acquisitions and restructuring.